The Peace Corps 

Performance and Accountability Report

Fiscal Year 2009
A PDF version of this report is available at www.peacecorps.gov/docs. Send feedback to the Peace Corps at the mailing address, or at www.peacecorps.gov/contactus.

The Peace Corps

Performance and Accountability Report

F i sca l Y e ar 2 0 0 9

Paul D. Coverdell Peace Corps Headquarters | 1111 20th Street NW | Washington, DC 20526
Environment Volunteer, Panama
Contents

Message from the Director iii

Management’s Discussion and Analysis 1

Overview of the Peace Corps 2

Mission and Organizational Structure 3

How Peace Corps Volunteers Serve Around the Globe 5

Overview of FY 2009 Goals and Results 10

Core Issues 23 

Actions to Address Agency-Identified Prior Year Challenges 26

Agency-Identified Future Challenges 29

Analysis of Financial Statements 31

Analysis of Systems, Controls, and Legal Compliance 33

Management Assurances 33

Performance Section 36

Agency Performance 37

Annual Performance Results 39

Program Evaulation 57

Financial Section 64

Message from the Chief Financial Officer 65

Financial Statements 67

Notes to the Financial Statements 71

Inspector General’s Audit Transmittal Letter 82

Auditor’s Report 85

Other Accompanying Information 96

The Inspector General’s Statement on the Peace Corps’ 

Management and Performance Challenges 97

Agency Response to the Inspector General’s Statement 

on the Peace Corps’ Management and Performance Challenges 101

Summary of Financial Statement Audit and 

Management Assurances Tables 104

Appendices 108

Appendix 1: Summary of Audit Findings 109

Appendix 2: Glossary of Acronyms 110
Current and Former Peace Corps Countries Current Peace Corps Countries

Former Peace Corps Countries

AlbaniaArmeniaAzerbaijanBelizeBeninBoliviaBotswanaBulgariaBurkina FasoCambodiaCameroonCape VerdeChinaCosta RicaDominican Republic

Eastern Caribbean:

Antigua/BarbudaDominicaGrenada/CarriacouSt.Kitts/NevisSt.LuciaSt.Vincent/Grenadines

EcuadorEl SalvadorEthiopia

Federated States of 

Micronesia, and PalauFijiThe GambiaGeorgiaGhana

GuatemalaGuineaGuyanaHondurasJamaicaJordanKazakhstanKenyaKyrgyz Republic

LiberiaLesotho

MacedoniaMadagascarMalawiMaliMauritaniaMexicoMoldovaMongoliaMoroccoMozambiqueNamibiaNicaraguaNiger

PanamaParaguayPeruPhilippinesRomaniaRwandaSamoaSenegalSouth AfricaSurinameSwaziland 

TanzaniaThailandTogoTongaTurkmenistanUgandaUkraineVanuatuZambia

Current Peace Corps Countries
iii

I am pleased to present the Peace Corps Performance and Accountability Report for fiscal year (FY) 2009. 

This report provides an overview of the agency’s financial and performance results and accomplishments for 

the past fiscal year.

Originally conceived in 1961, the Peace Corps’ mission is to promote world peace and friendship. Nearly 50 

years later, the mission and the three goals of the Peace Corps remain the same. These three goals are an 

invaluable guiding light to those who serve: 

1. Help the people of interested countries in meeting their need for trained men and women

2. Help promote a better understanding of Americans on the part of the peoples served

3. Help promote a better understanding of other peoples on the part of Americans

Today, nearly 7,700 Peace Corps Volunteers serve around the world in 74 countries. Volunteers face old and 

new challenges. Poverty, disease, famine, and illiteracy are issues that continue to challenge developing 

countries and, in some cases, are exacerbated by current problems like climate change, government instability, 

and terrorism. Living and working in communities around the world for 27 months creates hope and a crosscultural understanding that is incomparable to any other life experience. As a former Peace Corps Volunteer 

in the Dominican Republic from 1967 to 1970, I know firsthand the impact such Americans have in the 

communities where they serve.

The issue of Volunteer health, safety, and security must remain an agency priority. There are inherent dangers 

in serving overseas, but with quality training, a committed staff, and clear systems in place, the health, safety, 

and security of Peace Corps Volunteers will be assured in a manner that allows enough flexibility for Volunteers 

to truly become a part of the community in which they serve.

The past year marked the first year of agency operations under the FY 2009–2014 Strategic Plan. The new 

plan uses the Peace Corps’ three core goals as the focus of the agency’s strategic planning efforts. Overall, the 

Peace Corps achieved success in 23 of its 36 measurable performance indicators. Of the 13 indicators where 

performance was not met, eight had substantive performance, nearly meeting the targets.

The Peace Corps FY 2010 budget request represents the first step in a strategic presidential initiative to 

increase the number of Peace Corps Volunteers. To ensure that the Peace Corps does the best possible job of 

recruiting, training, and supporting an expanded number of Volunteers, the agency must and will identify best 

practices and rigorously incorporate them in an efficient and cost-effective manner. 

In FY 2010, the Peace Corps will continue to take significant steps to manage quality growth in both new 

countries and in countries where we already have a post. The agency will establish an Office of Innovation 

to encourage the pursuit of cutting edge ideas and agency best practices. Finally, the Peace Corps will place 

greater emphasis on the agency’s third goal and encourage returned Peace Corps Volunteers to continue their 

service at the conclusion of their overseas tour.

The accompanying financial statements are reliable and complete. The appropriated funds from Congress 

totaled $340 million in FY 2009 and $330.8 million, net of rescission, in FY 2008. Budgetary resources 

available from all years and all sources for use by the agency totaled $372.6 million in FY 2009 and $356.2 

million in FY 2008. The agency’s total assets increased from $158 million as of September 30, 2008, to the 

current level of $177 million as of September 30, 2009. 

THE DIRECTOR OF THE PEACE CORPS

WASHINGTON, D.C.
iv

Improvements in financial management are reflected in the Message from the Chief Financial Officer that 

follows in the Financial Section of this report. 

For the third consecutive year, independent external auditors rendered an unqualified (clean) audit opinion 

on the Peace Corps’ financial statements. No material weaknesses were identified by the auditors or otherwise 

within the agency. Additionally, our success in reporting accountability was recognized by a second awarding 

to the Peace Corps of the prestigious Association of Government Accountants’ Certificate of Excellence in 

Accountability Reporting. This was achieved through our fully certified and accredited financial system, 

our internal control program, and the tireless efforts of the agency’s financial management and performance 

teams.

The agency’s financial and performance data presented in this report is fundamentally complete and reliable. 

The enclosed annual management assurance statement concludes that the Peace Corps can provide reasonable 

assurance that its internal controls and financial management systems meet the specified objectives in 

sections two and four of the Federal Managers’ Financial Integrity Act.

As the Peace Corps approaches its 50th anniversary, the agency continues to promote world peace and 

friendship through the outstanding efforts of the thousands of Americans who serve as Volunteers. Moreover, 

the number of new applicants continues to soar as thousands more Americans are inspired by President 

Obama’s call to service. The Peace Corps stands ready to accept and support a new generation of Volunteers 

who will usher in the next 50 years of the agency.

Sincerely,

Aaron S. Williams, Director

November 16, 2009
M anag e m e nt ’ s d i scuss i o n and A na l ys i s

Education Volunteer, Belize
2 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Overview of the Peace Corps

0

The Peace Corps works within a capacity building 

framework to provide human resources, rather 

than financial or material support, to other 

countries. Peace Corps Volunteers serve for two 

years in countries that have expressed interest in 

working in partnership to address host country 

development goals. The basic approach is to

•	 build capacity of individuals, local 

organizations, and communities

•	 emphasize appropriate technologies and 

sustainable practices and

•	 facilitate peer-to-peer sharing of information 

and skills

This framework provides the structure for planning 

and implementing sustainable development work in 

a number of different sectors. To assure a long-term 

impact, Peace Corps is responsive to host country 

goals, designs projects using a participatory 

process, carefully defines what Volunteers will 

contribute to national and local efforts, and trains 

Volunteers for their work with local counterparts 

and communities.

The Peace Corps brings a unique value-added role 

to development. Volunteers learn the local language 

and customs, adopt a modest lifestyle, and immerse 

themselves both professionally and socially into 

the lives of their communities for a period of two 

years. Peace Corps is the only U.S. government 

agency that takes this approach. 

Volunteers are trained to speak the local language 

and to develop the cross-cultural and technical 

skills that enable them to build local capacity, often 

in underserved areas. Because they gain the trust 

and respect of the people they work with, Volunteers 

often serve as a functional link between communities 

and technical resources and information that 

otherwise might not reach their target audience. 

In this manner, Peace Corps complements the 

development efforts of other organizations and 

agencies.

By living within the communities where they 

work, Volunteers share American culture while 

acquiring a deep understanding of their host 

culture. As returned Peace Corps Volunteers 

(RPCVs), they bring that new understanding home, 

continuing to encourage cross-cultural dialogue 

and contributing to America’s legacy of service 

by offering their time and skills to community 

volunteer programs and organizations around the 

country. Since the inception of the Peace Corps in 

1961, nearly 200,000 Americans joined the Peace 

Corps, serving in 139 different countries.

The agency continues to balance growth, new 

initiatives, and improving operations to optimize 

its performance and remain relevant in meeting 

host country needs and the agency’s mission and 

three core goals. 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 3

Management’s Discussion and Analysis

Mission Statement

The Peace Corps’ mission to promote world peace 

and friendship is as critical today as it was when the 

agency was founded in 1961. The three core goals 

are:

1. Help the people of interested countries in 

meeting their need for trained men and women

2. Help promote a better understanding of 

Americans on the part of the peoples served

3. Help promote a better understanding of other 

peoples on the part of Americans

Through engagement in development work, the 

Peace Corps seeks to achieve a number of medium 

and long-term outcomes in the countries of service. 

These outcomes include: increasing individual 

and community awareness and aptitudes in the 

designated skill areas; changing individual and 

community practices to foster improved conditions; 

and strengthening the capacity of individuals and 

communities to address their problems and serve 

as role models for others.

Achievement of these outcomes will lead to more 

stable communities and increase the number of 

sustainable partnerships between the U.S. and 

other countries. These partnerships will foster 

collaboration on critical global issues, which 

furthers the long-term goal of a more peaceful world.

By living and working within local communities, 

Peace Corps Volunteers foster positive relationships 

with host country nationals, dispel myths about 

Americans, and promote sustainable development. 

Volunteers reflect the diversity of the United States, 

and represent some of the finest characteristics 

of the American people: a generosity of spirit, a 

strong work ethic, a commitment to service, and an 

approach to problems that is both optimistic and 

pragmatic. Volunteers often live in remote, isolated 

communities where they speak local languages and 

learn the cultures and customs of the people they 

serve. During this process, Volunteers share and 

represent the culture and values of the American 

people and, in doing so, earn respect and admiration 

for the United States among people who may have 

limited contact or exposure to Americans or 

American culture. 

Upon their return to the United States, Volunteers 

bring back to their communities and workplaces a 

rich and in-depth perspective about life overseas, 

the people they served, and the cultures they 

experienced. 

The Peace Corps combines development with the 

strong people-to-people relationships that Volunteers forge with host country colleagues and 

communities, providing a crucial foundation for 

peace and friendship for years to come. 

Mission and Organizational Structure

0
4 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Peace Corps Organization

Executive

Secretariat

Office of 

American 

Diversity/EEO

Office of the

General Counsel

Director

Deputy Director

Overseas Posts

Office of 

Safety and 

Security

Office of the Chief

Financial Officer*

Office of 

Volunteer Support

Overseas 

Programming 

and Training 

Support

Office of 

the Chief

Information 

Officer*

Peace Corps 

Response

Overseas Posts

Inter-America 

and the 

Pacific Region

Africa Region

Overseas Posts

Europe,

Mediterranean, 

and 

Asia Region

Office of

Inspector 

General

Chief of Staff

Deputy Chief of Staff

Office of 

Acquisitions

and Contract

Management*

Office of 

Management

Office of 

Private Sector

Initiatives

Office of Strategic 

Information, 

Research 

and Planning 

Office of

Congressional

Relations

Office of

AIDS Relief

Office of 

Communications

Office of 

Press Relations Chief Compliance

Officer

Director of 

Special Initiatives

Domestic 

Programs

Office of

Volunteer 

Recruitment

and Selection

* In their functions as Chief Financial Officer and Chief 

Information Officer, the incumbents report directly to 

the Director. The Office of Acquisitions and Contract 

Management reports to the Chief of Staff with a dotted 

line report to the Director.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 5

Management’s Discussion and Analysis

Volunteer projects and activities are the primary 

focus of the Peace Corps program. Volunteers are 

involved in a variety of host country projects because 

they speak the local languages, appreciate the 

cultural traditions, and are eager to respond to local 

community needs. Currently, the Peace Corps’ work 

worldwide falls into six general sectors: agriculture, 

business development, education, environment, 

health and HIV/AIDS, and youth development. 

Additionally, Volunteers in all sectors incorporate 

meaningful work in information and communication 

technology, women in development/gender and 

development, HIV/AIDS, and youth development 

into their primary and secondary activities. A 

discussion of each sector’s work objectives and 

examples of Volunteer activities follow. 

Agriculture

The Peace Corps’ agriculture projects are designed 

to promote environmentally sustainable farming 

practices. Along with their environment-sector 

counterparts, many agriculture Volunteers help 

farmers focus on the long-term productivity of 

their fields by maintaining and improving soils and 

managing water. They demonstrate the importance 

of working with local, natural inputs to control pests 

and erosion. Increasingly, Volunteers and their 

partners are promoting approaches to farming that 

are both sustainable and organic as they continue 

to work with a broad range of agricultural products. 

Volunteers are also helping their host country 

communities mitigate the adverse effects of the 

global food security crisis. For example, a project 

in Africa helped a community build silos to store 

corn and beans, increasing food security by 

enabling the community to prevent crop loss from 

rodents, securing higher market rates for their 

crops, and eliminating the need for pesticides to 

protect the crops.

Volunteers systematically include women and 

youth in their agriculture-extension activities. 

Today, a Volunteer is as likely to be working with 

a women’s association or youth club as with a male 

head of household. 

Examples of Volunteer work include: 

•	 Training farmers and extension agents to 

develop and disseminate successful farming 

practices 

•	 Improving traditional field-crop systems by 

introducing farmers to better practices and 

technologies such as new soil conservation 

techniques, crop diversification, and 

agroforestry strategies 

•	 Expanding the availability and acceptance 

of nontraditional crops by promoting and 

strengthening vegetable gardening and fruit 

tree production while raising awareness about 

the nutritional value of the foods produced 

•	 Increasing knowledge and skills needed for 

small-animal husbandry, such as poultry, 

rabbits, fish, and honey production 

•	 Helping producers increase the value of their 

agricultural products by developing new 

products, while improving storage, expanding 

distribution, and implementing more effective 

management and marketing 

Business Development

The business development sector includes four 

subsectors: community, municipal, business, and 

organizational development. Volunteers with a 

variety of business education and professional 

experiences are assigned to projects that focus on 

How Peace Corps Volunteers Serve Around the Globe

0

Nearly 10,000 followers are provided 

a glimpse of Peace Corps’ daily activities 

through Twitter. Launched in 2009, 

twitter.com/peacecorps continues 

to attract a faithful following.
6 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

business, organizational, and communication skills 

in local government offices, nonprofit agencies, and 

for-profit businesses. Recently, the focus of work in 

this sector has shifted from business consulting to 

more community economic development, emphasizing sustainability, transparency, community 

volunteerism, and leadership training. In response 

to the needs of a global economy, the number of 

business Volunteers continues to grow as efforts 

intensify to assist underserved communities and to 

expand entrepreneurial skills for women and youth. 

Examples of Volunteer work include: 

•	 Training activities in computer and 

Internet use 

•	 Training entrepreneurs in marketing, business 

planning, and bookkeeping 

•	 Helping artisan cooperatives market their 

handmade goods 

•	 Advising women’s groups about access 

to credit 

•	 Educating young people to enable them to 

enter the workforce and participate in the 

market economy 

•	 Helping businesses find markets for 

traditional and value-added products 

•	 Counseling businesses, including 

microfinance, on organizational issues 

•	 Teaching financial management to 

nongovernmental organizations

•	 Working with ecotourism project planning 

through community-based resource 

management.

Education 

Education remains the Peace Corps’ largest program 

sector. In reality, all Volunteers are, to some extent, 

educators. Many host country nationals describe 

how the Peace Corps Volunteer who taught them 

years ago opened up new vistas for their future and 

empowered them to make a difference. Education 

projects include team-teaching courses in math, 

science, health, environment, and civics, or skillsbased classes in English and literacy. Education 

Volunteers strengthen local capacity by training 

and mentoring teachers in K-12 schools, teachertraining colleges, and universities. Based on the 

needs of host communities, Volunteers support 

programs for vulnerable, marginalized or other 

special-needs children. They also create afterschool programs, clubs, and camps for boys and 

girls to promote HIV/AIDS prevention and life 

skills. Education Volunteers train teachers to 

expand learning opportunities through the use 

of Information and Communications Technology 

(ICT), including radio, video, and computers, 

which are increasingly important for accessing 

information, communicating professionally, 

and equipping students with 21st-century skills. 

Improved ICT broadens access to education, 

makes learning more interactive, provides teachers 

with access to classroom materials, and enables 

classrooms around the world to communicate and 

collaborate. 

Volunteers are also making significant contributions to girls’ education and gender awareness. 

Around the world, Volunteers promote activities 

that help expand educational opportunities for 

females in both formal and nonformal settings. For 

example, Volunteers conduct summer leadership 

camps for girls, support community awareness 

of girls’ achievements and potential, encourage 

their participation in the classroom, establish safe 

environments for after-school study, and organize 

career fairs for women. Similarly, Volunteers are 

working with boys and men to explore gender 

roles, expectations, and opportunities in a rapidly 

changing world. 

Peace Corps debuted on YouTube in 2009. 

Visitors can learn what service is like by 

watching Volunteers around the globe at 

www.youtube.com/user/peacecorps.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 7

Management’s Discussion and Analysis

Examples of Volunteer work include: 

•	 Teaching students through classes and 

extracurricular activities 

•	 Mentoring counterparts and training teachers

•	 Advising in the development of curricula and 

teaching materials 

•	 Promoting community and school-based 

resource centers 

•	 Advising school-community organizations, 

parent-teacher groups, and community 

development projects 

•	 Supporting adult education 

•	 Promoting distance learning 

•	 Supporting special-needs classes, such as deaf 

education 

•	 Encouraging early childhood education

•	 Working with radio stations to teach English 

and HIV/ AIDS prevention

Environment 

Volunteers working on environment projects help 

strengthen a community’s ability to sustainably 

conserve and use natural resources. They work 

primarily at the grassroots level, focusing on 

human needs and sustainable alternatives. 

Volunteers focusing on agroforestry, for example, 

identify and train local leaders so they can teach 

other farmers how to use forestry to improve the 

productivity and resource sustainability of their 

fields and gardens. Similarly, Volunteers implement 

education activities outside the classroom through 

environmental clubs and eco-camps. At some 

posts, schools and communities are connected for 

the first time as parents and youth work together to 

identify joint projects, such as bottle recycling or 

community cleanup days. 

Examples of Volunteer work include: 

•	 Promoting reforestation and soil and water 

conservation with individual farmers 

•	 Co-teaching classes in schools, conducting 

teacher-training seminars, and developing 

curricula related to environmental topics 

•	 Promoting nonformal environmental 

education (e.g., summer camps, eco-clubs, 

Earth Day events, and theater dramas)

•	 Working with entrepreneurs and associations 

to develop or strengthen alternatives to 

unsustainable harvesting and cultivation 

practices, such as generating income from 

renewable natural resources 

Health and HIV/AIDS 

Volunteers work in health projects to promote 

preventive health education, with an emphasis on 

overall health and well-being. The scope of these 

projects includes: hygiene and sanitation; water 

systems development and enhancement; food 

security; maternal and child health; communicable 

diseases; chronic illnesses; and healthy lifestyles, 

exercise, and decision making. Volunteers and 

their counterparts address these issues in a variety 

of ways, including formal classroom instruction 

from kindergarten to university level; materials 

development; training for health care providers; 

and nonformal health sessions using murals, 

theater, radio, television, and puppet shows. 

Many Volunteers focus on HIV/AIDS prevention 

and care exclusively or as part of a comprehensive 

community health project. Life skills training 

continues to be at the center of Volunteers’ HIV/

AIDS prevention work, particularly when targeting 

youth. Increasingly, Volunteers are assigned to HIV/

AIDS-related nongovernmental organizations and 

National and local media promote the 

positive influence the Peace Corps has had 

on so many lives. In its September 14, 2009, 

issue, Business Week named the agency as 

one of the best places to launch a career.
8 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

assist in increasing the technical, managerial, and 

administrative capacities of these groups. Volunteers 

are uniquely suited to work in HIV/AIDS prevention 

because they live and work in local communities 

and can present information in culturally sensitive 

ways. The Peace Corps is collaborating with the 

U.S. Department of State’s Office of the Global 

AIDS Coordinator to support the U.S. government’s 

commitment to worldwide HIV/AIDS care, prevention, and treatment through the President’s 

Emergency Plan for AIDS Relief (PEPFAR). 

Examples of Volunteer work include: 

•	 Teaching about health and HIV/ AIDS 

prevention and care 

•	 Expanding peer education to urge youth and 

others to reduce risky behavior 

•	 Promoting healthy lifestyles, especially 

for youth 

•	 Supporting youth and orphan activities 

and care 

•	 Providing nutrition and hygiene education 

classes in communities 

•	 Promoting education about infectious 

disease prevention 

•	 Assisting in maternal and child health clinics 

•	 Strengthening nongovernmental healthdelivery systems 

•	 Constructing and managing water systems

•	 Supporting community sanitation efforts 

Youth 

Since the inception of the Peace Corps in 1961, 

Volunteers have had great success working with 

youth. It is often young people in a community 

who are the Volunteers’ first language coaches 

and cultural interpreters. In turn, young people 

value the opportunity to learn from Peace Corps 

Volunteers. In many of the countries in which 

Peace Corps works, nearly 50 percent of the 

population is under the age of 25. Volunteers 

in the youth sector are guided by three key 

principles: promoting positive youth development, 

facilitating a greater level of youth participation, 

and approaching community development from 

an asset-based point of view. Volunteers and their 

partners integrate these approaches into standalone youth development projects and into projects 

that cross all program sectors. The Peace Corps’ 

approach to youth development supports effective, 

sustainable work with young people, their families, 

and their communities. Projects also aim to build 

the capacity of youth-serving organizations and the 

host country professionals who work with young 

people. Critical issues affecting youth throughout 

the world include successfully making the 

transition from school to work, developing relevant 

skills to prepare them for family life, and becoming 

engaged and active citizens in their communities. 

Volunteers also serve a valuable role in reaching 

special populations, such as children orphaned due 

to HIV/AIDS, street children, and other vulnerable 

young people. Volunteers work with their partners 

to improve employment skills for disenfranchised 

and out-of-school young men and women, and 

provide support to youth to help avoid drugs and 

prostitution. Many Volunteers serve as mentors for 

young people and as counterparts in youth service 

organizations. Volunteers are uniquely positioned 

to provide learning opportunities to girls and boys 

at the grassroots level. The overarching purpose of 

youth development work is to help young men and 

women maintain healthy lifestyles and prepare 

them for their roles and responsibilities in work 

life, family life, and as good citizens. 

The Peace Corps was formally recognized 

in 2009 by undergraduate college students 

as the #7 most ideal employer to meet their 

career goals in a UNIVERSUM survey.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 9

Management’s Discussion and Analysis

Examples of Volunteer work include: 

•	 Increasing employability skills, career 

planning, and entrepreneurship training 

•	 Supporting training for computer skills and 

Internet use 

•	 Developing leadership, communication, and 

teamwork skills through sports, recreation, 

drama, and arts opportunities

•	 Providing environmental education and 

community service opportunities 

•	 Providing life skills through family life and 

healthy lifestyles training, including HIV/

AIDS prevention 

•	 Promoting positive leadership and citizenship 

development 

•	 Developing the skills of teachers, youth 

promoters, and social workers to better 

facilitate participatory, asset-based learning 

opportunities for youth 

•	 Working to encourage parents and other 

community adults to support youth priorities 

7,600

2005 2006 2007 2008 2009

7,500

7,700

7,800

7,900

8,000

8,100

The on-board count for all Peace Corps Volunteers 

and trainees, and Peace Corps Response Volunteers, from all funding sources serving under the 

Peace Corps as of September 30, 2009, is 7,671. 

This number includes 339 Volunteers funded by 

the President’s Emergency Plan for AIDS Relief. 

The on-board count includes 68 posts and 74 

countries in which the Peace Corps is active or 

suspended, but not closed. Some posts cover more 

than one country.

Number of Volunteers

Fiscal Year

7,810

7,749

8,079

7,876

7,671

Volunteer Projects

Education 

35% Environment 

14%

Health and 

HIV/AIDS 

21%

Business 

Development 

15%

Agriculture 

5%

Youth 

6%

Other: 4%
10 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Overview of FY 2009 Goals and Results

0

FY 2009 Overview of Performance

The 1993 Government Performance and Results 

Act requires all federal agencies to issue a 

Strategic Plan that includes a mission statement 

and outlines long-term goals, an annual performance plan, which provides annual performance 

targets to achieve the goals and objectives in 

the Strategic Plan, and an annual performance 

report that evaluates the agency’s progress toward 

achieving those performance targets. Since FY 

2004, the Peace Corps has published a Performance 

and Accountability Report to transmit the annual 

performance information.

Strategic Goals and Agency Core Goals

This Performance and Accountability Report is 

based on the new FY 2009-2014 Strategic Plan 

and is the first report on performance of a new set 

of 38 indicators (two did not have targets in 2009, 

but were monitored). The FY 2009–2014 Strategic 

Plan is comprised of five strategic goals the Peace 

Corps seeks to achieve during that time period. 

The five goals align with the agency’s three core 

goals and include two that address overall effective 

management and support of the Volunteers. The 

Peace Corps’ Strategic Plan was developed with the 

help of over 100 staff members in each office and 

overseas post; nearly a year went into its creation.

The Peace Corps’ Mission is to Promote World Peace and Friendship

1. Help the people of interested countries in meeting their need for trained men and women.

2. Help promote a better understanding of Americans on the part of the peoples served.

3. Help promote a better understanding of other peoples on the part of Americans.

Strategic Goal 1

Enhance the 

capacity of 

host country 

individuals, 

organizations, and 

communities to 

meet their skill 

needs

Strategic Goal 2

Promote a better 

understanding 

of Americans 

on the part of 

host country 

individuals, 

organizations, 

and communities 

served by 

Volunteers

Strategic Goal 3

Foster outreach 

to Americans 

through agency 

programs that 

assist Volunteers 

and returned 

Peace Corps 

Volunteers to help 

promote a better 

understanding 

of other peoples 

on the part of 

Americans

Strategic Goal 5

Implement the 

Peace Corps 

mission in an 

effective and 

efficient manner 

through the 

provision of high 

quality Volunteer 

support with 

optimal health 

care, safety and 

security support, 

and effective 

management of 

resources

Strategic Goal 4

Provide 

Volunteers 

who represent 

the diversity of 

Americans to 

meet the evolving 

technical needs of 

host countries

PEACE CORPS CORE GOALS
The Peace Corps :: performance and acco untability report :: fiscal year 2009 11

Management’s Discussion and Analysis

Outcome Goals and Performance Goals

Each strategic goal is supported by one or more 

outcome goals that define the results the agency 

expects to achieve in order to reach its longterm strategic goal. In turn, each outcome goal 

is supported by one or more performance goals, 

which state tangible, measurable objectives the 

agency expects to carry out.

Performance Indicators

Quantitative targets are set for each performance 

indicator, allowing the agency to measure and report 

on progress toward its long-term organizational 

goals.

The Peace Corps met 23 of 36 measurable performance indicators with targets for FY 20091

. Despite 

overall agency resource challenges and other 

external constraints, the agency met 64 percent 

of its targets due to the dedicated staff around the 

world and the work of the Volunteers.

1 In FY 2009 there are 38 performance indicators in the annual 

performance plan, two of which did not have targets in 2009 

but were monitored. Targets will be set for FY 2010 and 

beyond. 

Health Volunteer, Kenya

Peace Corps is reaching out to a diverse 

group of Americans. A 50+ initiative in 2009 

contributed to the agency’s impressive 

level of experience, with the oldest serving 

Volunteer being 85 years old.
12 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Performance Summary of Goals and Results

The Government Performance and Results Act requires all federal agencies to create performance measures 

to support its goals. The following tables provide an overview of the Peace Corps’ performance measures for 

FY 2009. The measures are organized by the goals and objectives they support, as specified in the Peace Corps’ 

Strategic Plan. 

STRATEGIC GOAL Met

Not Met, but 

Substantive 

Performance 

Measured

Not Met

1. Enhance the capacity of host country individuals, 

organizations, and communities to meet their 

skill needs

8 1 1

2. Promote a better understanding of Americans 

on the part of host country individuals, 

organizations, and communities served by 

Volunteers 

2 1 0

3. Foster outreach to Americans through agency 

programs that assist Volunteers and returned 

Peace Corps Volunteers to help promote a better 

understanding of other peoples on the part of 

Americans

3 2 0

4. Provide Volunteers who represent the diversity of 

Americans to meet the evolving technical needs 

of host countries

5 1 0

5. Implement the Peace Corps mission in an 

effective and efficient manner through the 

provision of high quality Volunteer support with 

optimal health care, safety and security support, 

and effective management of resources

5 3 4

TOTAL INDICATORS 23 8 5
The Peace Corps :: performance and acco untability report :: fiscal year 2009 13

Management’s Discussion and Analysis

STRATEGIC GOAL 1: Enhance the capacity of host country individuals, organizations, and 

communities to meet their skill needs

Outcome Goal 1.1: Country programs fulfill host country skill needs

Performance Goal 1.1.1

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

1.1.1a Percentage of project plans meeting 

the expressed needs of the host country 85% 97% Y

1.1.1b

Percentage of posts providing annual 

progress reports to their host country 

agency sponsors and partners

75% 53% N

1.1.1c

Enhance the average length of service of 

Volunteers to equal or exceed 21 months 21 months 22.1 months Y

Outcome Goal 1.2: Volunteers have the competencies necessary to implement 

a country program 

Performance Goal 1.2.1

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

1.2.1a

Percentage of Volunteers meeting local 

language requirements for service, per 

post testing standards

85% 93% Y

1.2.1b

Percentage of Volunteers reporting 

training as adequate or better in preparing 

them technically for service

70% 80% Y

1.2.1c

Percentage of Volunteers reporting 

training as adequate or better in preparing 

them to work with counterparts

60% 79% Y
14 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Outcome Goal 1.3: Host country individuals, organizations, and communities demonstrate 

an enhanced capacity to meet their own needs 

Performance Goal 1.3.1

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

1.3.1a

Percentage of Volunteers reporting 

that their work transferred skills to host 

country individuals and organizations 

adequately or better

70% 88% Y

1.3.1b

Percentage of Volunteers reporting 

their HIV/AIDS education and outreach 

is effective

75% 59% N

1.3.1c

Percentage of projects documenting 

increases in host country national 

capacity

70% 91% Y

1.3.1d

Percentage of partner organizations 

reporting their assigned Volunteers 

fulfilled their requested need for technical 

assistance

50% 52% Y
The Peace Corps :: performance and acco untability report :: fiscal year 2009 15

Management’s Discussion and Analysis

Strategic Goal 2: Promote a better understanding of Americans on the part of host country 

individuals, organizations, and communities served by Volunteers

Outcome Goal 2.1: Host country individuals and communities learn about Americans 

through shared experiences with Peace Corps Volunteers 

Performance Goal 2.1.1

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

2.1.1a

Percentage of Volunteers reporting that 

training prepared them to manage 

cultural differences during service 

adequately or better

91% 92% Y

2.1.1b

Percentage of posts conducting 

supervisory/counterpart training on 

working effectively with Volunteers

95% 100% Y

2.1.1c

Percentage of host country nationals 

who have interacted with Volunteers 

who believe that Americans are committed 

to assisting other peoples

Target not 

set. Under 

development 

based on 

ongoing 

evaluations

44% NA

2.1.1d

Percentage of Volunteers reporting 

that their work helps promote a better 

understanding of Americans on the part 

of the peoples served

75% 74% N
16 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Strategic Goal 3: Foster outreach to Americans through agency programs that assist Volunteers 

and returned Peace Corps Volunteers to help promote a better understanding 

of other peoples on the part of Americans

Outcome Goal 3.1: Americans have increased awareness and knowledge of other cultures 

and global issues 

Performance Goal 3.1.1

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

3.1.1a Percentage of Volunteers participating in 

the Coverdell World Wise School program 60% 57% N

3.1.1b

Number of individuals and organizations 

supporting the Peace Corps Partnership 

Program

8,000 10,595 Y

3.1.1c Number of youth-serving programs 

hosting Volunteer activities 4,600. 4,700 Y

3.1.1d

Monitor the percentage of Volunteers 

who report sharing their experiences with 

family, friends, and the American public

No Target. 

Agency is 

monitoring the 

activities

99% NA

Performance Goal 3.1.2

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

3.1.2a Number of RPCVs participating in 

agency-initiated activities 7,700 9,102 Y

3.1.2b Number of schools impacted by the 

activities of RPCVs 550 502 N
The Peace Corps :: performance and acco untability report :: fiscal year 2009 17

Management’s Discussion and Analysis

Strategic Goal 4: Provide Volunteers who represent the diversity of Americans to meet the 

evolving technical needs of host countries

Outcome Goal 4.1: Volunteers provided at every post meet the evolving technical 

needs of host countries 

Performance Goal 4.1.1

PERFORMANCE INDICATORS FY 2009 Target FY 2009 

Actual

Target 

Achieved

4.1.1a

Maximize the number of Volunteers 

serving annually based on available 

funding and the provision of support to 

ensure their optimal effectiveness

7,300 7,671 Y

4.1.1b At least 95% of the number of trainees 

and skills sought annually are met 95% 96% Y

Performance Goal 4.1.2

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

4.1.2a

Redesign the Volunteer Delivery System 

and implement recommendations to 

improve its effectiveness

Complete redesign 

of critical processes 

and prioritize 

implementation of 

recommendations

Achieved Y

4.1.2b

Reduce the response time to applicants 

from 100 days in FY 2009 to 80 days by the 

end of FY 2011

100 Days 123 Days N

Outcome Goal 4.2: Trainees assigned to serve overseas represent the diversity of Americans 

Performance Goal 4.2.1

PERFORMANCE INDICATORS FY 2009 Target FY 2009 

Actual

Target 

Achieved

4.2.1a Number of mid-career and age 50 and 

older applicants 1,500 2,041 Y

4.2.1b Number of applicants of diverse 

ethnicities 2,100 3,070 Y
18 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Strategic Goal 5: Implement the Peace Corps mission in an effective and efficient manner 

through the provision of high quality Volunteer support with optimal health 

care, safety and security support, and effective management of resources

Outcome Goal 5.1: Volunteers are safe, healthy, and well supported to ensure their focus on 

Peace Corps’ sustainable development and cross-cultural mission 

Performance Goal 5.1.1

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

5.1.1a

Percentage of Volunteers reporting 

that their safety and security training is 

adequate or better

95% 96% Y

5.1.1b

Percentage of posts having their safety 

and security plans reviewed annually by 

Peace Corps safety and security officers

33% 21% N

5.1.1c

Percentage of posts implementing critical 

recommendations focused on Volunteer/

trainee safety and security on a timely 

basis

100% 84% N

5.1.1d

Percentage of Volunteers reporting they 

feel “usually safe” or “very safe” where 

they live and work

90% 89% N

Performance Goal 5.1.2

PERFORMANCE INDICATORS FY 2009 

Target

FY 2009 

Actual

Target 

Achieved

5.1.2a

Percentage of Volunteers rating their 

satisfaction with health care received 

from Peace Corps medical officers as 

adequate or better

90% 93% Y

5.1.2b

Percentage of Volunteers reporting the 

emotional support received from Peace 

Corps staff as adequate or better

70% 81% Y

5.1.2c

Percentage of Volunteers reporting 

adequate or better support in coping 

with stress issues of HIV/AIDS in their 

community

60% 73% Y
The Peace Corps :: performance and acco untability report :: fiscal year 2009 19

Management’s Discussion and Analysis

Outcome Goal 5.2: Peace Corps continually improves its staff and critical work processes 

and manages its resources in an effective and efficient manner 

Performance Goal 5.2.1

PERFORMANCE INDICATORS FY 2009 Target FY 2009 

Actual

Target 

Achieved

5.2.1a

Percentage of posts and headquarters 

offices managing resources within 

approved budgets and operational plans

95% 83% N

5.2.1b

Percentage of posts and headquarters 

offices that annually review resource 

management ratios for improvement

95% Not fully 

implemented N

Performance Goal 5.2.2

PERFORMANCE INDICATORS FY 2009 Target FY 2009 

Actual

Target 

Achieved

5.2.2a

Percentage of post projects engaging host 

country officials in their formulation and 

implementation

95% 94% N

5.2.2b

Percentage of posts and headquarters 

offices with documented personnel 

practices that include staff development, 

performance management, and awards 

and recognition policies

70% 56% N

Performance Goal 5.2.3

PERFORMANCE INDICATOR FY 2009 Target FY 2009 

Actual

Target 

Achieved

5.2.3a

Annually review, streamline, and 

implement improvements to at least one 

agency mission critical process

Minimum of one 

critical process 

a year

Achieved Y
20 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Performance Analysis

The specific performance of each of the five Peace 

Corps goals contained in the FY 2009–2014 

Strategic Plan is discussed below.

Strategic Goal 1: Enhance the capacity of 

host country individuals, organizations, and 

communities to meet their skill needs

Results: Met the goal for 8 of 10 measures

At the beginning of the year, Peace Corps projects 

worldwide numbered 204. Of these, 97 percent 

reflected the development needs of the country, 

exceeding the target. Two actions led to success: 

regional management emphasized to the field the 

importance of good project plans and provided 

training and technical assistance on the Peace 

Corps’ approach to participatory development. The 

agency did not meet the target set for sharing annual 

reports with host country partners, due to budget 

constraints and staff shortages. Fifty-three percent 

prepared annual reports on all of their projects. 

Twenty percent nearly met the goal, having prepared 

reports on some, but not all, of their projects. The 

average length of service improved above the target 

in FY 2009 to 22.1 months and the resignation 

rate decreased to 7.3 percent. Continued review of 

resignation data, along with external factors such 

as economic conditions and increased interest in 

volunteerism and service, could be positive factors 

in helping the agency to retain Volunteers.

The agency is preparing Volunteers well in the key 

areas needed for them to competently undertake 

their work. Ninety-three percent of the Volunteers 

met the local language requirements for service, 

80 percent reported that training prepared them 

technically for their service, and 79 percent reported being prepared to work with their counterparts. 

Several innovations contributed to successful 

achievement of the targets. The agency piloted an 

online language learning system, Rosetta Stone, 

held workshops and online training sessions for 

Volunteers and staff, and increased post technical 

consultancies from the headquarters’ staff.

Transferring skills and building the capacity of 

host country partners is the key result expected of 

all Peace Corps projects and Volunteer activities. 

In FY 2009, the number of Volunteers reporting 

they had transferred skills to host country 

individuals significantly exceeded the targets. 

Similarly, projects reporting that increases in host 

country capacity were documented exceeded the 

target by 21 percent and the number of partner 

organizations reporting the Volunteers met their 

needs for technical assistance exceeded the target 

by 2 percent. 

Volunteers’ activities in the HIV/AIDS area, 

however, fell short of the target. Many Volunteers 

reported challenges in measuring the effectiveness 

of their HIV/AIDS interventions. Volunteers know 

they taught the lessons, but are unsure if that 

knowledge results in behavior change. The Peace 

Corps will emphasize the integration of behavior 

change concepts into future programming and 

training.

Strategic Goal 2: Promote a better 

understanding of Americans on the part of 

host country individuals, organizations, and 

communities served by Volunteers

Results: Met the goal for 2 of 3 measures

Two of the three performance measures were met. 

Volunteers reported high satisfaction with the 

cross-cultural training provided by the agency 

and reported they were well prepared to work with 

counterparts. Training increases the Volunteers’ 

ability to live and work in their host community and 

teaches a set of skills and a framework to interpret 

cultural norms. Volunteers also reported their work 

promoted a better understanding of Americans on 

the part of peoples served. Furthermore, all posts 

conducted training for counterparts or partners of 

Volunteers.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 21

Management’s Discussion and Analysis

Strategic Goal 3: Foster outreach to 

Americans through agency programs that 

assist Volunteers and returned Peace 

Corps Volunteers to help promote a better 

understanding of other peoples on the part 

of Americans

Results: Met the goal for 3 of 5 measures

Returned Peace Corps Volunteers participating 

in agency-initiated activities are the strongest 

promoters of the third goal. Sharing Volunteer 

experiences helps to promote an increased awareness of other countries, cultures, and global issues 

on the part of Americans. These headquarterssponsored programs exceeded the target in FY 

2009.

The Peace Corps Partnership Program allows 

American students, clubs, individuals, and organizations to provide funds to assist a Volunteer 

and his or her host community in completing a 

community-driven project. In FY 2009, the number 

of individuals and organizations supporting 

this program greatly exceeded the target, and 

collectively contributed $1.7 million to assist 

Volunteers and their communities to implement 

small scale projects. 

Volunteers participated in the Coverdell World 

Wise Schools Correspondence Match, a program 

that links currently serving Volunteers with school 

children in the United States. Topics remain timely 

and relevant to today’s challenges and teachers laud 

the program as a way to “open a window to the world” 

for their students. Additionally, returned Volunteers 

were successfully matched with external groups to 

share their Peace Corps experiences at home. 

Strategic Goal 4: Provide Volunteers who 

represent the diversity of Americans to 

meet the evolving technical needs of host 

countries

Results: Met the goal for 5 of 6 measures

A number of key management decisions were 

made in FY 2009 in order to improve recruitment 

effectiveness and efficiency. Organizational 

changes were made in order to bring leadership 

and innovation to recruitment activities and to 

redesign the system used to recruit, select, and 

place Americans interested in Peace Corps service. 

As applications continue to increase, the agency is 

taking steps to attract the best and the brightest 

and to ensure that the skills these Americans bring 

match the needs expressed by the countries in 

which the Volunteers are placed. 

The Peace Corps is committed to recruiting as 

many qualified Americans as requested by our 

host countries to serve as Peace Corps Volunteers, 

including applicants over the age of 50 and 

people of diverse backgrounds and ethnicities. In 

addition, in FY 2009, the Peace Corps worked with 

federal agencies and other outside organizations to 

motivate applicants with specialized skills to apply. 

Those skills in high demand include more advanced 

language levels in French and Spanish. 

The work the agency has done on assessing and 

mapping a strategy to redesign its Volunteer 

Delivery System (VDS) is one of the most important 

cross-cutting work activities of FY 2009. This 

modernization will bring the Peace Corps into 

the 21st century with an integrated, efficient, and 

comprehensive life cycle management system— 

from applicant to RPCV—providing new and better 

tools to attract and place highly qualified, serviceoriented individuals. The Peace Corps is now on Facebook. Learn 

more at www.facebook.com/peacecorps
22 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Strategic Goal 5: Implement the Peace Corps 

mission in an effective and efficient manner 

through the provision of high quality 

Volunteer support with optimal health care, 

safety and security support, and effective 

management of resources

Results: Met the goal for 5 of 12 measures

Supporting Volunteers in the field is a critical 

responsibility of every Peace Corps employee. 

Resources within the organization are allocated 

with the goal of delivering the best efficiency, 

effectiveness, and value to the operations that 

support the work of the Volunteer. 

Balancing the need to keep Volunteers as safe as 

possible while maintaining the integrity of the 

Volunteer experience is one of the challenges facing 

the Peace Corps. The agency strives to integrate 

safety and security considerations into every 

stage of the Volunteer’s service. From application 

to close-of-service, Volunteers receive the best 

information available about safety risks and how 

they can minimize them. While Volunteer service 

is not without risk and Volunteers must take on 

much of the responsibility for their own safety, the 

Peace Corps has an extensive, well-established, 

and effective support system focused on Volunteer 

safety. 

The health of Volunteers is one of the agency’s top 

priorities, with individuals serving around the 

world in a variety of challenging environments. 

Volunteer satisfaction is just one of many 

components of health that the agency monitors 

and evaluates. Peace Corps continues to provide 

the best possible medical and mental health care 

and support to its Volunteers. The agency promotes 

and enhances the well-being of Volunteers through 

the continuous evaluation of business processes 

and review of practices. Training for both staff and 

Volunteers, site visits to posts in need of specialized 

skills (such as countries that have experienced 

traumatic events), and constant review of available 

data sources all contribute to Volunteers being 

healthy and productive.

A new area added to the agency’s Strategic Plan 

focused on financial management and the review 

of business processes. With a global operation of 

68 overseas posts, many different currencies, and 

thousands of monthly transactions, the agency 

places a priority on responsible management of its 

resources. The two indicators show that the agency 

has a strong record of managing its resources, but 

can still improve by implementing more reviews 

and comparisons to other organizations to ensure 

it is operating as well as its peers. In addition, by 

identifying, reviewing, and improving a business 

process each year, the agency should achieve 

tangible gains in most key functional areas over the 

life of the Strategic Plan.

Reporting Procedures and Data Quality

The Peace Corps is committed to providing 

transparent, reliable data for managerial decisionmaking and oversight. The Office of Strategic 

Information, Research, and Planning, created 

during FY 2007, continued its work in ensuring 

continuity and reliability of the performance data 

reported by the agency. 

The agency continued the practice of reviewing 

performance results during the mid-year budget 

reviews to reinforce performance and budgeting 

alignment. This integrated mid-year assessment 

allows for the redirection of agency resources in 

consideration of challenges or achievements.

The Peace Corps’ FY 2009 performance results are 

based on reliable and valid data complete as of the 

production of the results at the end of the fiscal year. 

Overall, the Peace Corps has made great progress 

in institutionalizing its performance reporting 

procedures and processes, and is well-positioned to 

provide solid results on its performance measures.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 23

Management’s Discussion and Analysis

Core Issues

0

Agency Priorities

Quality Growth

 As the Peace Corps approaches its 50th anniversary, 

the agency continues to capture the imagination of 

the American people and stands ready to accept and 

support a new generation of Volunteers inspired by 

President Obama’s call to service. Quality growth 

will emphasize strategic recruitment, sustainable 

programming, exceptional Volunteer support, and 

strong leadership.

In preparation for growth in existing Peace Corps 

countries and in countries that do not currently 

have a Peace Corps program, all operations within 

the agency must identify best practices. This may 

include some centralization and reorganization 

of personnel to ensure efficient and cost-effective 

growth occurs. 

Additionally, the redesign of the Volunteer Delivery 

System—the agencywide process to recruit, screen, 

place, and support Volunteers—is underway. 

Processes and technologies were examined in 

FY 2009 and new approaches recommended to 

modernize agency operations. These changes will 

allow for more efficient, flexible operations, as well 

as data-driven strategic decision-making.

Volunteer Safety and Security

The issue of Volunteer health, safety, and security 

must remain an agency priority. There are inherent 

dangers in serving overseas, but with quality 

training, a committed staff, and clear systems in 

place, the health, safety, and security of Peace Corps 

Volunteers will be assured in a manner that allows 

enough flexibility for Volunteers to truly become a 

part of the community in which they serve. 

Peace Corps staff and Volunteers work together to 

create a framework that maximizes, to the extent 

possible, Volunteers’ well-being, enabling them to 

carry out their mission effectively. The Peace Corps 

incorporates safety and security information into 

all aspects of Volunteer recruitment, training, and 

service, and ensures that safety and security policies 

and training curricula are current. Volunteers 

are asked to do their part by taking responsibility 

for their behavior at all times and by integrating 

successfully into their host communities.

In FY 2009, among other changes, responsibilities 

were established to provide support and assistance in 

the aftermath of a serious crime against a Volunteer. 

The Criminal Incidence Reporting System, the 

mechanism by which posts report on the status of 

their safety and security programs, was revised, and 

the reporting system for safety and security incidents 

was upgraded. The agency continues to review its 

safety and security program and implement new 

measures to maximize its effectiveness.

HIV/AIDS Initiative

Today, one of the most serious worldwide threats to 

public health and development is the spread of HIV/

AIDS. The impact from this global pandemic crosses 

all areas of community life. Peace Corps Volunteers 

provide hope and meaningful assistance to people 

affected by HIV/AIDS through work in public health 

education, health extension, and development 

with youth, communities, nongovernmental 

organizations, business advising, and information 

technology. Volunteers are uniquely suited to work 

in the field of HIV/AIDS because they are trained in 

the local language, live and work in the communities 

where they serve, and know how to share information in a culturally sensitive way. 

Since 2004, the Peace Corps has been a key 

participant in the President’s Emergency Plan for 

AIDS Relief (PEPFAR). As PEPFAR transitions 

from a focus on “emergency” to a focus on 

sustainability, the work of Peace Corps Volunteers 
24 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

building human capacity at the grassroots level 

is especially valuable. In FY 2009, 25 Peace 

Corps posts received PEPFAR funds, while 

other posts benefited from activities organized 

by the headquarters using central PEPFAR 

funding. Support provided included training for 

Volunteers, staff, and counterparts; small grants 

for communities; technical assistance to posts; and 

funding for 339 HIV-focused Volunteers, including 

Peace Corps Response Volunteers who respond 

to sudden needs for aid such as tsunamis and 

earthquakes. 

In FY 2009, the Peace Corps Global HIV/AIDS 

Strategy guided the agency’s response to the 

HIV/AIDS pandemic. This strategy supports the 

agency’s mission of providing an effective and 

satisfying Volunteer experience, contributes to the 

achievement of the Peace Corps’ three core goals, 

and aligns with its FY 2009–2014 Strategic Plan. 

Food Security

Peace Corps Volunteers live in communities 

throughout the world that have been hit hard by 

the world food crisis. The Peace Corps formed an 

agencywide food security task force in the spring 

of 2008 to explore the dimensions of the problem 

and identify appropriate responses in countries in 

which the Peace Corps is serving. 

In early FY 2009, the Peace Corps hosted a food 

security summit. Guest experts discussed ways 

in which international organizations, including 

the Peace Corps, can collaborate and complement 

one another’s efforts and contribute to possible 

solutions, while soliciting the participation of 

the public and private sectors. Twenty-eight 

recommendations and the creation of an informal 

advisory group resulted from the summit.

Additionally, the task force created an electronic 

food security toolkit for Peace Corps country 

directors and staff to help them identify methods to 

address food security issues and to help empower 

Volunteers and their host country partners to 

continue to take action and effectively respond to 

the crisis. To raise awareness of the issue of food 

security to both internal and external audiences, 

the agency has taken actions like creating an 

informational video titled “The Silent Tsunami” 

and launching an internal “landing page” on its 

electronic knowledge management system, Guru.

Finally, the Peace Corps has been coordinating 

with other U.S. government partners on the food 

security issue. The U.S. Agency for International 

Development (USAID) Africa Bureau has assigned 

a senior food security advisor to work at Peace 

Corps for one year. The adviser will provide support 

for Peace Corps posts in Africa to strengthen 

programming and training in food security and to 

facilitate additional collaboration and coordination 

between Peace Corps and USAID in their food 

security efforts.

Volunteerism and United We Serve 

In FY 2009, the agency continued its efforts to 

support Peace Corps Volunteers in promoting 

volunteerism, using a service learning approach. 

The newly developed Volunteerism Action Guide 

was distributed to all Volunteers to assist them in 

deepening their efforts to promote volunteerism 

and service learning in the communities in which 

they serve. 

Field staff members were provided with virtual 

training opportunities, support materials, and 

online collaboration tools to support different 

models of service learning. Additionally, the 

agency conducted a story and photo contest to 

identify creative ways in which the Volunteers, 

staff, and posts are engaging young people to 

address community priorities in health, education, 

environmental action, and HIV/AIDS. 

Returned Peace Corps Volunteers have a tradition 

of making a difference in their communities by 

selflessly contributing their skills and experience 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 25

Management’s Discussion and Analysis

through their dedication to service. In FY 2009, the 

Peace Corps actively participated in the summer 

phase of President Obama’s service initiative—

United We Serve—a call to all Americans to join 

a volunteer effort and be part of building a new 

foundation for America, one community at a time.  

United We Serve’s summer phase culminated 

with the inaugural National Day of Service and 

Remembrance on September 11.  

The entire Peace Corps community was encouraged to contribute to United We Serve. Information 

provided on the Peace Corps website detailed how 

returned Peace Corps Volunteers, applicants, 

invitees, and friends and families could become 

involved in the effort. In honor of the special day, 

Peace Corps Director Aaron Williams and Peace 

Corps employees in all nine Peace Corps regional 

recruiting offices across the country took time to 

volunteer for local service projects.

Smart Contracting

The Peace Corps continues to look for ways 

to reduce costs without impacting its mission 

capability. In FY 2009, the agency in-sourced 

significant portions of its information technology 

support services contract and completed the first 

phase of a strategic sourcing effort to reduce the 

cost of medical supplies and pharmaceuticals. 

This effort involves taking advantage of buying 

agreements implemented and managed by the 

Veterans Administration, as well as establishing 

new regional/international buying agreements 

to improve the efficiency and effectiveness of the 

medical supply chain. In FY 2010, the agency plans 

to in-source three major support service contracts 

and will also begin the process of converting a cost 

reimbursement training services contract to a firm 

fixed-price contract through competition.

Business Volunteer, Kazakhstan
26 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

0

Actions to Address Agency-Identified Prior Year Challenges

Positioning the Peace Corps for Growth and 

Impact in the 21st Century 

During FY 2008, the agency identified some 

challenges to the Peace Corps’ ability to position 

itself for growth and increased impact in the 

years ahead. In FY 2009, the agency took many 

substantive steps to address those challenges. 

Impact Evaluation

Field evaluations began at nine posts during FY 

2009 to assess the impact of Volunteer’s work on 

transferring skills to host country individuals, 

communities, and organizations and promoting a 

better understanding of Americans on the part of 

the people that we serve. These evaluations of Peace 

Corps’ first two core goals are taking place across 

many cultures and in three main program sectors: 

business development, education, and health and 

HIV/AIDS. 

To ensure that the evaluations are carried out in a 

consistent and valid manner across the multicultural 

environments in which the Peace Corps operates, 

the agency took many proactive steps. Following the 

pilot evaluations in FY 2008, standard questionnaires were created for counterparts, beneficiaries, 

and host families to ensure that the concepts 

are measured in a consistent manner. The field 

evaluations are carried out by third-party host 

country interviewers, who help adjust the language 

of the questionnaires to respect host country norms.

Additionally, the Peace Corps developed an indepth two-day training program taught by agency 

and post staff for the host country researchers, 

helping to ensure a standard methodology. The 

training includes seven training modules, complete 

with handouts and session outlines, to ensure 

consistent delivery of study expectations and 

implementation across posts. Further, a standard 

statement of work ensures that the evaluators meet 

high standards for research and evaluation and 

have excellent qualifications for carrying out the 

work in-country.

The data has been gathered from the field evaluations to examine the work of Peace Corps Volunteers 

in HIV/AIDS prevention. Evaluation topics include 

the ways in which the individual, organization, or 

community changed as a result of the Peace Corps 

Volunteers’ HIV/AIDS-related project and whether 

the changes in knowledge or behavior were still 

evident after the Volunteer’s departure.

The agency began an evaluation of its third core 

goal activities by conducting focus groups with 

returned Peace Corps Volunteers (RPCVs) who 

are current federal employees. The focus groups 

included RPCVs from the 1960s through the 

2000s, representing all geographic regions in 

which Peace Corps Volunteers serve. Discussions 

centered on the long-term career impact of Peace 

Corps service, as well as the effectiveness of 

services to RPCVs provided by the agency. The 

focus groups yielded findings concerning career 

motivations and choices. For instance, for nearly 

half of the RPCVs, career enhancement was the 

primary factor for joining the Peace Corps. A 

better understanding of motivations and career 

choices sheds light on recruitment strategies, as 

well as third goal activities. RPCVs sharing their 

international expertise and experience with other 

Americans in a variety of career settings can help 

U.S. organizations to adapt enhanced international 

focuses.

Additionally, the agency, through a collaborative 

process, developed a survey to be administered 

to RPCVs regarding a broad range of third goal 

issues. The survey and further focus groups will be 

completed in early FY 2010.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 27

Management’s Discussion and Analysis

Integrating Organizational 

Performance Management

The agency’s development of its new Strategic Plan 

for FY 2009–2014 was a very inclusive effort that 

solicited input from hundreds of staff members at 

headquarters and all posts throughout the world. 

As a part of budget and performance integration, 

managers understand their responsibility for 

meeting their performance goals and that their 

progress will be assessed at regular intervals, 

including during mid-year and year-end reviews. 

In FY 2009, the agency focused on implementing 

the new Strategic Plan at all levels and significantly 

strengthened the alignment of office and field-level 

performance with new agency-level performance 

goals, creating a more integrated approach to 

Peace Corps work. As a result of the review process 

undertaken during the budget and performance 

planning cycle in February 2009, with overseas staff 

reviewing the agency plan and agency-level reviews 

of the field plans, both goal alignment and indicator 

consistency have been improved. For instance, the 

first quarter performance review in January 2009 

and the mid-year budget and performance reviews 

that took place in May 2009 were an opportunity 

to reallocate funding and human resources to 

correct a course of action if there were challenges in 

meeting performance goals or to validate positive 

actions taken to meet performance goals.

Furthermore, the development and refinement of 

performance indicator data sheets for indicators 

in the FY 2009–2014 Strategic Plan incorporated 

clarifications from the 2009 mid-year reviews and 

will help ensure consistent performance reporting 

in the future. In FY 2009, particular attention 

was given to the refinement and articulation of 

data collection processes for specific indicators, 

as needed. The data sheets provide important 

accountability, transparency, and consistency in 

performance reporting.

Youth Volunteer, Nicaragua
28 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Growth in the Number of Volunteers

The agency remains poised for growth while 

working within the realities of budget uncertainties and constraints. In FY 2009, the agency 

received more than 15,000 applications from 

Americans interested in serving overseas as Peace 

Corps Volunteers, an 18 percent increase over FY 

2008. While the funding level in FY 2009 did not 

allow for an expansion in the number of Volunteers 

serving overseas, the agency, nonetheless, worked 

on streamlining its processes for delivering 

Volunteers to the field to effectively meet host 

country needs.

The agency has made the Volunteer Delivery 

System (VDS) modernization initiative a priority. 

The Volunteer life cycle refers to the agency’s 

recruitment, placement, and support of Volunteers 

throughout their service and continued engagement 

with returned Peace Corps Volunteers. To manage 

this life cycle, the agency employs a number of 

cumbersome, disjointed systems of forms, databases, and business processes developed over 

many years and reflecting shifting priorities. 

Together, these systems comprise the VDS and 

the modernization effort will generate a single, 

electronic, coherent system through which the 

agency will manage the Volunteer life cycle from 

awareness and application to service and return.

Financial Challenge

The major financial challenge anticipated in 

FY 2008 was not overcome during FY 2009. As 

expected, the long-term effect of the escalations 

in overseas costs and the unfunded drop in the 

value of the U.S. dollar experienced throughout FY 

2008 commanded a significant share of the agency 

resources, forcing strategic reductions in staff, in 

the number of Volunteers, and in services across the 

agency during FY 2009, despite an overall increase 

in agency resources. The agency, though, is poised 

to be in a much more favorable resource position 

during FY 2010, with an anticipated increase in 

funding appropriated by Congress. 

Finding more effective and less costly ways to 

prepare country directors and other personnel 

for their assignments at posts around the world is 

an ongoing challenge. Transmitting the critical 

elements of financial management information 

successfully to new country directors and others is 

a process that is continually refined. 

Agriculture Volunteer, Cape Verde
The Peace Corps :: performance and acco untability report :: fiscal year 2009 29

Management’s Discussion and Analysis

Agency-Identified Future Challenges

0

The development and implementation of the FY 

2009–2014 Strategic Plan has helped position 

the Peace Corps for growth and impact in the 21st

century. As the Peace Corps approaches its 50th

anniversary, the agency continues to capture the 

imagination of the American people and stands 

ready to accept and support a new generation of 

Volunteers inspired by President Obama’s call to 

service.

Managing Growth Quality

In preparation for growth in existing Peace Corps 

countries and in countries that do not currently 

have a Peace Corps program, all operations 

within the agency must identify best practices to 

ensure that growth occurs in an efficient and costeffective manner. The key to Peace Corps growth 

will be to ensure the agency can both support the 

Volunteers currently in the field and to recruit 

the best qualified applicants. Although the Peace 

Corps is fortunate to have strong support from 

President Obama, the Congress, and the American 

people, competition for sufficient funding is always 

a challenge. Additionally, the Peace Corps operates 

in a dynamic international environment.  Shifting 

political, economic, or social conditions can hinder 

Volunteer effectiveness on the ground or result in 

the agency having to suspend or close operations in 

certain countries.

Supporting and Utilizing Innovation

To support quality growth, the agency’s new 

management team plans to place added emphasis 

on innovation through the creation of an Office of 

Innovation. This office will encourage the pursuit 

of cutting edge ideas and best practices through the 

utilization of new technology, and the modernization of the agency’s information technology 

platform. Investments in information technology 

will improve communication and the transfer 

of information among posts and between posts 

and headquarters, enabling staff and Volunteers 

worldwide to work as global teams.  

Innovation and modernization of technologies can 

also be applied to the Peace Corps recruitment 

practices. Investments in the Volunteer Delivery 

System (VDS) will integrate all formal and 

informal Volunteer-related business processes, 

currently encompassing disconnected databases, 

organizational divisions, and business systems. 

Full integration of the core business processes of 

the Peace Corps, from recruitment and selection 

through deployment, training, support, and medical 

care, will better prepare the agency for growth, 

promote efficiency, and protect federally-mandated 

privacy information. The Peace Corps will be able 

to more quickly and accurately match recruits 

to Volunteer positions, thereby simultaneously 

increasing Volunteer satisfaction and host country 

benefit. More efficient recruitment processing 

also ensures higher recruiting yield. An integrated 

system is a vital and overdue asset for promoting 

effectiveness and business continuity, essential for 

an agency that limits employment to five years.

Promoting the Agency’s Third Goal

The third goal of the Peace Corps is to help promote 

a better understating of other peoples on the part 

of Americans. When Volunteers and friends of 

the Peace Corps support and engage in third goal 

activities, they help Americans gain a greater 

understanding of the world. They foster the spirit of 

world peace and friendship and inspire Americans 

to be civic minded by example.

Peace Corps service is a life-defining leadership 

experience. Since 1961, nearly 200,000 Americans 

joined the Peace Corps. However, evaluating the 

impact of the agency’s third goal is challenging. 

The agency must seek new and innovative ways 

to encourage more returned Volunteers to share 

their experiences with their fellow Americans to 
30 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

promote a better understanding of other cultures 

and countries. 

The Peace Corps is currently finalizing plans to 

implement the first extensive survey of returned 

Peace Corps Volunteers since 1996. This survey 

will provide the agency new perspectives on 

the returned Volunteer community, on agency 

outreach programs, and concerning its efforts to 

bring a better understanding of other peoples to the 

American people. 

Education Volunteer, Tanzania
The Peace Corps :: performance and acco untability report :: fiscal year 2009 31

Management’s Discussion and Analysis

Analysis of Financial Statements

0

Overview

The external auditor awarded an unqualified 

(clean) audit opinion on the financial statements for 

FY 2009. This was the third clean audit opinion in 

the last three fiscal years. The financial statements 

were generated from Odyssey, the agency’s certified 

and accredited financial system. The Congressional 

appropriation totaled $340 million in FY 2009 and 

$330.8 million, net of rescission, in fiscal year 2008, 

an increase of $9.2 million. Budgetary resources 

available from all years and all sources for use by 

the agency totaled $372.6 million in FY 2009 and 

$356.2 million in FY 2008. The agency has two 

years in which to obligate appropriated funds and 

five years in which to complete the payout process.

Analysis of Financial Condition

The Balance Sheet indicates total agency assets of 

$176.8 million at the end of fiscal year 2009. This 

represents an overall increase of more than 10 

percent over FY 2008 total assets of $158 million. 

The $21.1 million increase in the Fund Balance 

with Treasury was due to a $13 million increase in 

the cash balance for unexpended appropriations 

and an $8.3 million increase in non-entity funding 

for personal services contractors’ separation 

pay. Partially offsetting those increases was a net 

$1.9 million decrease in the Property, Plant, and 

Equipment (PP&E) primarily due to activating 

two software applications late in FY 2008 that 

were fully depreciated during FY 2009, reducing 

the overall net book value reported in the financial 

statements.

Assets. Total assets of the Peace Corps reflected 

in the Balance Sheet were $176.8 million as of 

September 30, 2009. The most significant assets 

were the Fund Balance with Treasury at 79 percent 

and PP&E at 17 percent as shown in the chart below.

Fund Balance 

with Treasury 

$139,058

79%

Property, Plant 

and Equipment 

$30,503

17%

Other Assets 

$3,420

2%

Prepaid 

Volunteer Living 

Allowances 

$3,863

2%

FY 2009 Assets by Type

(Dollars in Thousands)
32 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Liabilities. The Peace Corps had total liabilities 

of $218.1 million at the end of fiscal year 2009, as 

reported on the Balance Sheet. The increase in 

liabilities of $1.4 million from the FY 2008 level of 

$216.7 million was due to a $2.6 million increase in 

the federal employee benefits actuarial projection 

as calculated by the Department of Labor, and 

a $1.2 million decrease in contingent liabilities 

for administrative proceedings, legal actions, or 

claims reported at the end of FY 2009. Areas of 

significant change include an $8.3 million increase 

in non-entity fund liability for the personal 

services contractors’ separation and a decrease of 

$8.8 million to the unfunded employment related 

liability for the personal services contractors.

The net cost of operations at $323.6 million 

indicates the gross costs of the Peace Corps 

decreased by $33.8 million during FY 2009 due to 

the full year’s impact of the FY 2008 reduction in 

the agency’s personnel, the favorable effect of the 

U.S. dollar on global currencies, and an increase in 

earned revenues from other governmental agencies.

Limitations of the Principal 

Financial Statements

The principal financial statements have been 

prepared to report the financial position and 

results of operations of the Peace Corps, pursuant 

to the requirements of 31 U.S.C.3515 (b). While the 

statements have been prepared from the entity’s 

books and records in accordance with generally 

accepted accounting principles for federal entities 

and the formats prescribed by the Office of 

Management and Budget (OMB), the statements 

are in addition to the financial reports used to 

monitor and control budgetary resources, which 

are prepared from the same books and records. The 

statements should be read with the realization that 

they are for a component of the U.S. government, a 

sovereign entity.

Employee Benefits

$121,902 

56%

Non-Entity 

Funds

$40,060 

18%

Unfunded FECA 

Liability 

$27,560 

13%

Other Employment 

Related

$5,629 

3%

Accounts Payable

$9,104 

4%

Unfunded Annual Leave 

$7,237 

3%

Other Liabilities

$6,567 

3%

FY 2009 Liabilities by Type

(Dollars in Thousands)
The Peace Corps :: performance and acco untability report :: fiscal year 2009 33

Management’s Discussion and Analysis

Analysis of Systems, Controls, and Legal Compliance

0

Management Assurances

Federal Managers’ Financial Integrity Act

The Federal Managers’ Financial Integrity Act 

of 1982 (FMFIA) requires agencies to establish 

accounting and administrative controls to include 

program, operational and administrative areas, in 

addition to accounting and financial management. 

The implementation of internal accounting and 

administrative controls must provide reasonable 

assurance that (i) obligations and costs are in 

compliance with applicable law; (ii) funds, property, 

and other assets are safeguarded against waste, loss, 

unauthorized use, or misappropriation; and (iii) 

revenues and expenditures applicable to agency 

operations are properly recorded and accounted for 

to permit the preparation of accounts and reliable 

financial and statistical reports and to maintain 

accountability over the assets. The FMFIA 

establishes overall requirements for internal 

control and requires that the agency head evaluate 

and report annually on the control and financial 

systems that protect the integrity of federal 

programs (Section 2 and Section 4 of FMFIA, 

respectively). OMB Circular A-123, Management’s 

Responsibility for Internal Control, implements the 

FMFIA and defines management’s responsibility 

for internal control in federal agencies. The three 

objectives of internal control are to ensure the 

effectiveness and efficiency of operations, reliability 

of financial reporting, and compliance with 

applicable laws and regulations. The safeguarding 

of assets is a subset of all of these objectives. OMB 

Circular A-127, Financial Management Systems, 

prescribes policies and standards to follow in 

managing financial management systems. 

Internal Control within the Peace Corps

The agency’s senior assessment team established 

during FY 2006 and led by the Chief Financial 

Officer continued to conduct oversight of the Peace 

FY 2009 Annual FMFIA Assurance Statement

The Peace Corps assessed the effectiveness of the 

internal controls to support effective and efficient 

operations, reliable financial reporting, and 

compliance with applicable laws and regulations in 

accordance with the Federal Managers’ Financial 

Integrity Act of 1982 (FMFIA) Section 2 and 

OMB Circular A-123. Based on this assessment, 

the Peace Corps can provide reasonable assurance 

for FY 2009 that its internal control over the 

effectiveness and efficiency of operations, financial 

reporting, and compliance with applicable laws 

and regulations was operating effectively and no 

material weaknesses were found in the design or 

operation of the internal controls.

The Peace Corps conducted its assessment of 

whether the financial management systems 

conform to governmentwide financial systems 

requirements in accordance with FMFIA Section 

4. Based on this assessment, the Peace Corps can 

provide reasonable assurance that its financial 

management systems are in compliance with the 

applicable provisions of the FMFIA Section 4 and 

OMB Circular A-127 for FY 2009.

Aaron S. Williams, Director

November 16, 2009

Thomas Bellamy

Acting Chief Financial Officer

November 16, 2009
34 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Management’s Discussion and Analysis

Corps’ internal control program. Quarterly senior 

assessment team meetings monitored progress 

toward completion of the past fiscal year audit 

recommendations for the agency’s significant 

deficiencies. Department and office heads 

throughout the agency conducted risk assessments 

for their business areas during FY 2009 and 

identified no material weaknesses. Further, the 

department and office heads prepared annual 

assurance statements attesting to the adequacy 

of internal controls and identified no material 

weaknesses within their areas. In addition, the 

Office of the Inspector General conducted reviews, 

audits, investigations, and evaluations during this 

fiscal year. 

The annual assurance statement on page 33 is 

consistent with the annual financial statement 

audit report.

Summary

Receiving an unqualified (clean) financial audit 

opinion on its financial statements for FY 2009, 

as in the past two fiscal years, is a significant 

achievement for this agency. Our internal controls 

and financial management systems meet FMFIA 

and other regulatory objectives. It is with great 

pride that the agency submits its annual assurance 

statement on compliance.

Language Training, Paraguay
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P e rf o rmanc e s e ct i o n

Education Volunteer, Guyana
The Peace Corps :: performance and acco untability report :: fiscal year 2009 37

Performance Section

Agency Performance

0

Introduction

In FY 2009, Peace Corps focused on translating the 

new Strategic Plan into action. The agency was reenergized at all levels to achieve the three core goals 

of the agency, in particular by strengthening the 

collaboration, communication, and partnerships 

with the countries in which Volunteers serve. In 

an environment of resource challenges and other 

external constraints, the agency also strove to 

create effective management mechanisms and 

support for Volunteers.

The agency met 23 of the 36 measurable performance indicators for FY 2009 due to the dedicated 

work of the Volunteers and the staff around the 

world who support them. Of the 13 indicators 

where performance was not met, eight achieved 

substantial results. Two monitoring indicators also 

achieved substantial results and gave the agency 

new baseline data in order to set future targets.

Status of FY 2009 Performance Measures

FY 2009 is the first year the agency is reporting on 

the new set of performance goals and indicator 

targets outlined in the Peace Corps’ FY 2009–

2014 Strategic Plan. Overall, the agency achieved 

success in four of the five strategic goals, and met or 

exceeded targets in 64 percent of the 36 performance 

indicators.2 The analysis of the indicators by performance goal is provided in this Agency Performance 

Section. The agency will continue to examine and 

hone its performance management system in FY 

2010 to best measure and report on its work.

The chart below presents the agency’s FY 2009 

achievements as measured by performance goals 

and indicators.

2 The agency established success in a strategic goal by achieving 

targets in two-thirds of the performance indicators under 

each strategic goal.

PERFORMANCE GOAL Indicators Reached

1.1.1 Ensure the effectiveness of in-country programs 3 2

1.2.1 Ensure the effectiveness of in-country training 3 3

1.3.1

Increase the effectiveness of skills transfer to host 

country individuals, organizations, and communities 4 3

2.1.1

The work and life experiences of Volunteers in-country promote 

host country national learning about Americans 3 2

3.1.1

Volunteers share their in-country experiences with family, 

friends, and the American public 3 2

3.1.2

Increase returned Peace Corps Volunteers’ cultural outreach 

to the American public through Peace Corps programs 2 1

4.1.1

Recruit Volunteers who balance the needed manpower 

and technical needs at posts with the available applicant 

pool and its skills

2 2
38 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

PERFORMANCE GOAL Indicators Reached

4.1.2

Manage Volunteer recruitment functions in an effective and 

efficient manner 2 1

4.2.1

Recruitment and Volunteer placement efforts reflect the 

diversity of Americans 2 2

5.1.1 Enhance the safety and security of Volunteers 4 1

5.1.2

Provide quality medical and mental health services to 

trainees and Volunteers 3 3

5.2.1

Provide effective and responsive financial management that 

accurately reflects domestic and overseas operations 2 0

5.2.2 Ensure the effective management of Peace Corps resources 2 0

5.2.3

Review and improve critical Peace Corps work processes to 

ensure optimal performance 1 1

TOTAL INDICATORS 36 23

Business Volunteer, Mongolia
The Peace Corps :: performance and acco untability report :: fiscal year 2009 39

Performance Section

Annual Performance Results

0

Strategic Goal 1: Enhance the capacity of host country individuals, organizations, and 

communities to meet their skill needs.

In order to enhance the capacity of host country individuals, organizations, and communities, the agency must 

first work with the host country to identify its needs. To do this, the agency must have open communication 

and a positive working relationship at all levels—with the host country governments, partner organizations, 

communities, and counterparts. 

The project framework and activities are designed, in collaboration with national sponsoring agencies, to meet 

the development needs of the country. Additionally, numerous cross-cutting initiatives are integrated into all 

sectors, as appropriate, and allow for agility in recognizing shifts in skills needed on the ground. During the 

time horizon of this Strategic Plan, the agency will place greater attention on the environmental, educational, 

and food security issues that are critically important and interrelated to addressing the basic development 

issues in the countries served by Peace Corps. Once country needs are identified, the agency must provide 

appropriate Volunteers who are trained to effectively build individual and organizational capacity through the 

transfer of skills. Thus, it is essential to provide Volunteers with adequate language, cultural, technical, and 

capacity-building training. 

Throughout the year, Peace Corps posts collect detailed qualitative and quantitative data from all Volunteers 

about their activities via the Volunteer reporting tool, an electronic data management system. Each Volunteer 

reports on his/her activities and the outcomes, with the objectives in the sector-specific projects. Measuring 

host country capacity building is a major activity within each project and Volunteers report on these results in 

the reporting tool.

Additionally, the Peace Corps is conducting field evaluations to assess Peace Corps’ success in transferring 

needed skills to, and building the capacity of, host country nationals. The evaluations identify in what way 

and to what degree skills transfer and capacity building occur as Volunteers work alongside their host country 

counterparts and community members.

Outcome Goals:

1.1 Country programs fulfill host country skill needs.

1.2 Volunteers have the competencies necessary to implement a country program.

1.3 Host country individuals, organizations, and communities demonstrate an enhanced capacity to meet 

their own needs. 

Performance Goal 1.1.1: 

Ensure the effectiveness of in-country programs.
40 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

Agency Level Performance Indicators:

Performance Indicators 1.1.1 FY 09 Target FY 09 Result

a. Percentage of project plans meeting the expressed needs of the host 

country 85% 97%

b. Percentage of posts providing annual progress reports to their host 

country agency sponsors and partners 75% 53%

c. Enhance the average length of service of Volunteers to equal or 

exceed 21 months 21 months 22.1 months

Results and Analysis:

A well-designed development program should include active participation and collaboration on the part 

of host country agency sponsors. This practice is the foundation of Peace Corps’ work, beginning with the 

invitation from the host country to Peace Corps to work with them and continuing through the communitybased participatory assessments of assets and needs with local partners. 

At the beginning of the fiscal year, Peace Corps posts reported a total of 204 projects worldwide. Of those, 

97 percent report that the plans reflect the development needs of the country, thus exceeding the target. The 

reasons for achieving this high number are twofold: first, regional management emphasized to the field the 

importance of completing the project documentation, and second, the agency provided training and technical 

assistance to project managers and other staff on ways to achieve compliance with the Peace Corps’ approach 

to participatory development for capacity building.  In August 2008, the agency reviewed all project plans 

and identified those that required a more detailed explanation of the consultation process with host country 

partners. Throughout the year, headquarters technical staff worked with Peace Corps overseas staff to both 

improve the consultative process and improve the description of the process. 

Reporting annually to host country agency sponsors on the progress of the program is another important 

aspect of collaboration and increases accountability of the Peace Corps to the host country. The agency did not 

meet the target for this indicator. In 2009, 53 percent of posts shared with host country partners the annual 

reports that described all post projects. An additional 20 percent prepared reports on some, but not of all their 

projects. Annual reports are prepared in the host country language and English, are often shared on post 

websites, and are welcomed by host country agencies.

Typically, posts reported they combined information from firsthand Volunteer reports, site visits by in-country 

technical staff, and photos and vignettes to produce a printed brochure that was shared with government 

ministries and other host country sponsors. An alternate approach used by one post was to ask all Volunteers 

leaving service during the year to prepare a booklet of photos and descriptions of their work for the sponsoring 

agencies and their host communities. Some posts that previously had shared annual program achievements 

informally moved in FY 2009 to more structured reports and used the opportunity to engage in a dialogue 

with partners. 

Two constraints were reported by posts that did not prepare annual reports: budgetary limits and staff 

shortages.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 41

Performance Section

The effectiveness of Peace Corps’ in-country programs is directly related to the length of service of a Volunteer. 

Longer-serving Volunteers are more fully integrated into their communities, have acquired greater language 

proficiency, and report higher rates of satisfaction with their work as they have become more comfortable with, 

and rewarded by, their Peace Corps service. 

The average length of service in FY 2009 improved above the target to 22.1 months and the annual resignation 

rate decreased to 7.3 percent, the lowest in 10 years. 

Performance Goal 1.2.1: 

Ensure the effectiveness of in-country training.

Agency Level Performance Indicators:

Performance Indicators 1.2.1 FY 09 Target FY 09 Result

a. Percentage of Volunteers meeting local language requirements for 

service, per post testing standards 85% 93%

b. Percentage of Volunteers reporting training as adequate or better 

in preparing them technically for service 70% 80%

c. Percentage of Volunteers reporting training as adequate or better in 

preparing them to work with counterparts 60% 79%

Results and Analysis:

Proficiency in the language of the host community is a core competency for all Volunteers. Peace Corps’ 

certified language instructors test Volunteers on language training at the end of the pre-service training. The 

agency language scores show that the agency met its target. 

In FY 2009, Volunteer satisfaction with technical training exceeded the target. Eighty percent of Volunteers 

reported technical training as adequate or better. Technical training to prepare Volunteers to meet the 

specific needs of their communities is a key component of the preparation Peace Corps provides trainees prior 

to beginning service in-country. Volunteers participate in additional technical training sessions throughout 

their service, through formal and informal workshops and site visits from staff and technical experts. 

The target was exceeded because of the efforts of the training staffs at post and at headquarters. In early FY 

2009, several agencywide workshops were held to respond to the findings of the FY 2008 Volunteer survey. 

The Peace Corps held development and evaluation workshops in the field for overseas staff in all geographic 

regions, and increased post technical consultancies from the headquarters’ sector specialists. Guidance 

provided to posts via electronic workshops, additional support through e-learning portals, and the conduct 

of workshops in training design and evaluation contributed to this improvement. Additionally, the agency 

created a partnership with USAID to provide a senior food security advisor to strengthen training in food 

security, an area of increasing importance in Peace Corps programming.
42 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

Volunteers report they are well prepared to work with counterparts during their service, demonstrating that 

training has been effective in enabling them to gain critical skills needed for their assignments. Working with 

host country counterparts can be a rewarding and challenging aspect of a Peace Corps Volunteer’s experience. 

Volunteers and counterparts connect through their jobs and community activities and the counterparts are 

key community members with whom Volunteers share knowledge and skills. 

Volunteers’ satisfaction with the training on how to work with their host country counterparts significantly 

exceeded the target. Three regional workshops sponsored by headquarters brought overseas training staff 

together to share best practices among posts. The Strategic Plan indicators were featured at the workshops 

and staff members were encouraged to identify practical ways posts had developed to train Volunteers. 

The agency also made improvements in FY 2009 in the way it measures, assesses, and supports overseas 

staff capacity and performance. This was done to improve the training of Volunteers, as the Volunteers work 

directly to build the capacity of host country staff, organizations, and communities. Moreover, the agency 

conducted an internal assessment of the effectiveness of the office responsible for providing programming and 

training support to overseas staff at post. In response to the assessment, the agency is implementing numerous 

recommendations, including substantial organizational and functional changes so the office engages in 

overseas staff capacity building in addition to traditional functions of supporting Volunteer programming and 

training. Specifically, overseas staff training shifted from a four-week general orientation to more targeted 

training for different categories of overseas staff. 

The agency continues to look to technology to assist in effectively leveraging expertise and knowledge through 

online collaboration and knowledge management platforms. The agency is exploring pre-departure online 

training for “invitees” to enhance language, cross-cultural, and other skills prior to departing for their country 

of service. Additionally, the agency’s new online collaboration program is used by staff worldwide to share best 

practices and acquire information.

Performance Goal 1.3.1:

Increase the effectiveness of skills transfer to host country individuals, organizations, and communities.

Agency Level Performance Indicators:

Performance Indicators 1.3.1 FY 09 Target FY 09 Result

a. Percentage of Volunteers reporting that their work transferred skills 

to host country individuals and organizations adequately or better 70% 88%

b. Percentage of Volunteers reporting their HIV/AIDS education and 

outreach is effective 75% 59%

c. Percentage of projects documenting increases in host country 

national capacity 70% 91%

d. Percentage of partner organizations reporting their assigned 

Volunteers fulfilled their requested need for technical assistance 50% 52%
The Peace Corps :: performance and acco untability report :: fiscal year 2009 43

Performance Section

Results and Analysis:

Transferring skills and building the capacity of host country partners is the key result expected of Peace Corps 

work. In order to build sustainable local capacity, Peace Corps Volunteers’ assignments focus on transfer of 

skills to host country individuals and organizations in such areas as teaching and teacher training, community 

development, and health. 

In FY 2009, the number of Volunteers reporting in the agency’s annual survey of Volunteers that they had 

transferred skills to host country individuals significantly exceeded the target. The agency emphasized to 

Volunteers and overseas staff the importance not only of achieving results, but measuring the outcomes of the 

activities. Volunteers received additional training through evaluation workshops and WebEx sessions. In FY 

2009, the new electronic Volunteer reporting tool was deployed, which greatly increased Volunteers’ ability 

to track the number of individuals who may have gained new skills and knowledge. Significant training was 

provided during the roll-out of this tool, which also included training on methods to measure capacity building 

and skills transfer. 

The target established for Volunteer achievements in HIV/AIDS activities was not reached. In FY 2009, all 

Volunteers were encouraged to conduct activities related to education and outreach on HIV/AIDS. Results 

from the Volunteer survey show that Volunteers whose primary assignment was in the health/HIV/AIDS 

sector reported being more effective than Volunteers who participated in HIV/AIDS activities after work and 

on weekends. 

Nevertheless, prevention outreach and education is a difficult assignment for all Volunteers because of the 

taboo of discussing sex and sexuality in the communities in which they work. More than one-third of Peace 

Corps posts (26) reported their Volunteers face difficulties discussing HIV/AIDS because of stigma and/or 

religious beliefs and cultural sensitivities surrounding the disease and sexuality in general. A Peace Corps staff 

member in one African post wrote, “In rural communities, HIV/AIDS is still a taboo subject. ... It is difficult 

for [Volunteers] to easily talk about it with target populations.” The stigma that people living with HIV/AIDS 

encounter also makes effective engagement with these vulnerable populations very difficult for Volunteers.

Even when Volunteers are able to impart HIV/AIDs information, they are not able to predict how effectively 

the students will use the information. Said one Volunteer, “While students involved seem enthusiastic about 

the (HIV/AIDS) message and grasp the material, it is difficult to tell what they will do with it.” 

Many Volunteers report challenges in measuring the effectiveness of their HIV/AIDS interventions; 

they know they taught the lesson, but are unsure if that knowledge results in behavior change.  To address 

this, Peace Corps is placing an emphasis on integrating behavior change concepts into programming and 

training. Beginning in FY 2009, Peace Corps strengthened field staff capacity to train Volunteers in behavior 

change communication. In FY 2009, the Peace Corps organized six subregional workshops to introduce the 

concept of behavior change communication to staff. In FY 2010, additional behavior change communication 

workshops, using a training-of-trainer model, are planned. In addition to focusing on how to train Volunteers 

to design and implement appropriate HIV/AIDS outreach activities, these workshops will incorporate 

monitoring and evaluation methods to enable Volunteers and their counterparts to more ably measure the 

effectiveness of their work. 

All project plans have indicators for measuring capacity building. The methods used to measure capacity 

building, however, are different across the six sectors in which Peace Corps operates. Some have yet to identify 
44 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

the most effective ways to measure skills transfer. Of those reporting that they document capacity building, 

all rely on Volunteers’ reports. Seventy-two percent used “documented observations” to demonstrate changes; 

47 percent conducted project evaluations. Another 30 percent used pre- and post- tests, most often in the 

English language programs, though not exclusively. In some countries, Peace Corps works within the national 

testing system, such as in Ukraine, where the government requires Peace Corps to collect this information 

from Volunteers’ worksites. 

Constraints to documenting capacity building and skills transfer exist. Cultural barriers sometimes restrict the 

type of information that can be collected and partner organization feedback is often not timely. Nevertheless, 

the Peace Corps staff in one country creatively overcame this reluctance and developed a culturally sensitive 

questionnaire for host schools that allowed counterparts and school directors to assess Volunteers’ impact. 

Finally, a Peace Corps Volunteer serves for two years and may not observe the changes resulting from his/her 

work within that period. The agency’s impact studies report that host country nationals, many of whom are 

interviewed several years after a Volunteer served in their community, are more positive about the new skills 

learned and maintained than the Volunteer observed. 

The agency met the target for requesting information concerning the degree to which Volunteers fulfilled the 

organization’s needs. Most frequently (98 percent) posts sought the partners’ feedback during visits to the 

Volunteers’ worksites, a Peace Corps best practice. Post staff also solicited feedback during training courses 

that partners were invited to join (88 percent). Nearly half (42 percent) of posts convened project advisory 

committees—a working group of host country sponsors, such as government ministries and district officials, 

Volunteers, and Peace Corps staff. 

Strategic Goal 2: Promote a better understanding of Americans on the part of host country 

individuals, organizations, and communities served by Volunteers.

The Peace Corps sends Volunteers to countries around the globe to help promote a better understanding 

of Americans on the part of the host country individuals, organizations, and communities they serve. A key 

to effectively sharing about Americans is to ensure that Volunteers learn the local language, customs, and 

culture, and can live and work alongside host country nationals in a manner that builds trust and a willingness 

to work together. Thus, the Peace Corps structures its program to maximize a Volunteer’s ability to integrate 

into the local community, earning a trust and ability to share a better understanding of Americans. 

Cross-cultural training for both the Volunteers and their counterparts, the specific host country nationals 

with whom the Volunteers work on a regular basis, is another key factor in providing the groundwork for 

positive interactions in which Volunteers share a better understanding of Americans. Effective training 

can break down cultural barriers that exist through lack of knowledge of cultural norms. The Peace Corps 

strives to ensure that the pre-service and in-service training prepares Volunteers to integrate into their 

communities and work with their counterparts to build cross-cultural understanding, in addition to carrying 

out development projects. 

Volunteers help promote a better understanding of Americans through their service in host country communities. 

While Volunteers experience the same living conditions as the host people they serve, Volunteers also exemplify 

the diversity, characteristics, and values of the American people. As one of the expectations set out for Volunteers, 

they realize they represent Americans in their community and are mindful of that responsibility.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 45

Performance Section

Outcome Goal:

2.1 Host country individuals and communities learn about Americans through shared experiences with 

Peace Corps Volunteers. 

Performance Goal 2.1.1: 

The work and life experiences of Volunteers in-country promote host country national learning about 

Americans.

Agency Level Performance Indicators: 

Performance Indicators 2.1.1 FY 09 Target FY 09 Result

a. Percentage of Volunteers reporting that training prepared them to 

manage cultural differences during service adequately or better 91% 92%

b. Percentage of posts conducting supervisory/counterpart training 

on working effectively with Volunteers 95% 100%

c. Percentage of host country nationals who have interacted with 

Volunteers who believe that Americans are committed to assisting 

other peoples

Target not 

set. Under 

development 

based on 

ongoing field 

evaluations

44%

d. Percentage of Volunteers reporting that their work helps promote a 

better understanding of Americans on the part of the peoples served 75% 74%

Results and Analysis:

In FY 2009, two of the three measurable targets set for this outcome goal were met. A high number of Volunteers 

report they feel well-prepared for the cross-cultural part of their service, that they have observed changes in 

their counterparts’ attitudes toward Americans, and that their perceptions of the host country individuals 

with whom they interacted have changed.

Volunteers reported high satisfaction with cross-cultural training provided by the agency. Such training 

increases the Volunteers’ understanding of the culture in which they will live and work and teaches a set of 

skills and establishes a framework so they can make sense of what is experienced. Volunteers who report that 

they are well prepared to work with counterparts demonstrate that training was effective in enabling them to 

gain critical skills needed for their assignment.

Of equal importance for the Peace Corps is providing training for the counterparts or partners of the 

Volunteers, so they can understand American culture to better understand the Volunteer, and to help the 

Volunteers adjust to the local culture and integrate into their communities. All posts conducted training for 

counterparts and supervisors. The training ranged from a counterpart orientation when Volunteers moved to 

their sites to technical training conducted jointly with the Volunteers. 

The Peace Corps began conducting field evaluations in FY 2009 to obtain host country national perspectives 

of their understanding of Americans as a result of interacting with Peace Corps Volunteers. The goal of the 

research is to learn the extent to which host country partners, with whom Volunteers live and work, exhibit 

a willingness to learn from the Volunteer, observe and learn about Americans, have new perceptions about 

Americans, and increasingly trust the Volunteer. The evaluations examine the experience from various 
46 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

angles, seeking to understand the knowledge, attitude, and behavior changes that occur within host country 

populations through their work and contact with Volunteers.

Baseline data from the FY 2008 pilot phase (144 individuals from three countries) indicated that 81 percent 

spontaneously reported they thought Volunteers exhibited a caring attitude toward the community. 

Nine studies were initiated in 2009. At the end of FY 2009, complete data had been analyzed from three country 

studies (Bulgaria, Burkina Faso, and Nicaragua) and partial data from two (Jamaica and Romania). Of the 339 

individuals for whom data are available, 44 percent spontaneously mentioned that after living or working with 

Volunteers, they thought Volunteers exhibited a caring attitude toward the community. This data should be 

read with caution because the data is based on host country nationals’ responses to a general question: “Can 

you briefly describe what you think of Americans as a result of working with Peace Corps Volunteers?” Eightysix percent reported having a more positive view as a result.

Peace Corps Volunteers promoted a better understanding of Americans in a variety of ways, from sharing 

the customs of American holidays and food to discussing current events and geography. One said, “I think 

the issue of time and accountability are good examples of how host country nationals have gained a better 

understanding of Americans. There are also the general cultural differences in terms of food, music, language, 

and dress that are good examples. Host country nationals are constantly surprised by my ability to eat the local 

food. I am often asked questions about the geographical makeup of America or if Americans own cattle. I have 

been given many opportunities to talk about my upbringing; how the school system operates in America. Host 

country nationals have shown interest in these broad details, as well as wanting to know about my personal 

life.”

Strategic Goal 3: Foster outreach to Americans through agency programs that assist Volunteers 

and returned Peace Corps Volunteers to help promote a better understanding 

of other peoples on the part of Americans.

Volunteers and returned Peace Corps Volunteers (RPCVs) support Peace Corps’ third goal “to promote a 

better understanding of other peoples on the part of Americans,” through formal and informal interactions 

during and after their Peace Corps service. The agency supports such interactions by establishing programs 

that encourage outreach to the American public through a variety of means, such as personal interaction, 

electronic communication, and cross-cultural education curricula. The interactions are both one-on-one and 

in large group settings in classrooms, schools, civic clubs, and with other audiences.

The Peace Corps’ education partners at the K–12 and university levels are emphasizing global awareness and 

21st century skills, creating a positive environment in which to expand Peace Corps’ programs. The programs 

target different segments of the population, ranging from age-based curricula to a Correspondence Match 

program that connects a Peace Corps Volunteer with an American classroom, to a master’s level program in 

which a Peace Corps Volunteer’s service helps make progress toward his or her degree. Additionally, the Peace 

Corps Partnership Program, in which students, clubs, individuals, and organizations provide funds to assist 

a Peace Corps Volunteer and his or her host community in completing a community driven project, creates a 

strong connection between the American public and communities overseas.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 47

Performance Section

Outcome Goal:

3.1 Americans have increased awareness and knowledge of other cultures and global issues.

Performance Goal 3.1.1: 

Volunteers share their in-country experiences with family, friends, and the American public.

Agency Level Performance Indicators: 

Performance Indicators 3.1.1 FY 09 Target FY 09 Result

a. Percentage of Volunteers participating in the Coverdell World Wise 

School program 60% 57%

b. Number of individuals and organizations supporting the Peace Corps 

Partnership Program 8,000 10,595

c. Number of youth-serving programs hosting Volunteer activities 4,600 4,700

d. Monitor the percentage of Volunteers who report sharing their 

experiences with family, friends, and the American public 

No target. 

Agency is 

monitoring the 

activities

99%

Results and Analysis:

Volunteers’ participation in Peace Corps’ Coverdell World Wise Schools Correspondence Match program 

(a program that matches Volunteers with American school children and other correspondents) didn’t grow 

as expected in FY 2009. The major challenges the program faced were minimal resources for marketing a 

speakers match program and inadequate data management resources that constricted tracking of users of the 

program and requests coming through the regional recruiting offices for speakers match.  Coverdell World 

Wise Schools plans to collaborate closely with a third goal specialist from Returned Volunteer Services to 

conduct outreach to, and track, external groups to increase the number of speakers matching RPCVs with 

school-based groups. Coverdell World Wise Schools will continue its three-year project to work with various 

agency offices to secure the necessary technology resources to manage its speakers match data.

Nevertheless, increased outreach during Volunteers’ in-country training helped motivate them to correspond 

with American students about life in their host countries. One Volunteer stated, “It has been very rewarding 

communicating with a high school class in Kentucky. I think I have opened a window to the world for them and 

they have helped me view Moldova from their fresh perspective.” 

Comments received from teachers in FY 2009 show the impact Volunteers have on broadening students’ 

world view. “The Correspondence Match program has been a unique way for the students of one high school to 

connect with the world beyond the confines of our small town,” a teacher said. “So why is the World Wise Schools 

program important? My students learn more than geography and language arts: They learn perspective and 

empathy.” 

The number of programs served through the Correspondence Match program nearly met the target. Continued 

outreach with professional education organizations increased the number of schools aware of the program and 

interested in participating. Topics remain timely and relevant to today’s challenges. 
48 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

The Peace Corps Partnership Program helped achieve results in the agency’s first and third core goal areas, 

increasing Americans’ understanding of other cultures by inviting individuals or groups to donate funds to 

specific Peace Corps projects. In FY 2009 the number of U.S. donors, who collectively contributed $1.7 million, 

surpassed the target. 

The Partnership Program links donors in the United States with Volunteers and their host communities 

overseas. For example, a Peace Corps Volunteer in Togo initiated a “Take Our Daughters to Work Week,” with 

Peace Corps Partnership funds. The project successfully addressed gender and development issues in the 

Plateaux Region of the West African country. 

The funds gave the Volunteer a mechanism to work with community members to identify local development 

needs, then raise funds and find creative ways to meet those needs. It also allowed family, friends, and 

community to connect in a meaningful way with people in Togo.

The agency’s third goal is furthered as currently-serving Volunteers communicate in “real time” about daily 

life in their host countries. Technology use, such as podcasts, blogs, Twitter, and personal websites, increased 

in FY 2009 and allowed even more Volunteers to share their Peace Corps experience with friends and family 

back home. 

Performance Goal 3.1.2: 

Increase returned Peace Corps Volunteers’ cultural outreach to the American public through Peace Corps 

programs.

Agency Level Performance Indicators: 

Performance Indicators 3.1.2 FY 09 Target FY 09 Result

a. Number of RPCVs participating in agency-initiated activities 7,700 9,102

b. Number of schools impacted by the activities of RPCVs 550 502

Results and Analysis:

RPCVs participating in agency-initiated activities are the strongest promoters of the third goal. These 

headquarters-sponsored programs exceeded the target in FY 2009. 

Sharing Volunteer experiences helped to promote an increased awareness of other countries, cultures, and 

global issues on the part of Americans. In FY 2009, RPCVs shared their Peace Corps’ experiences in classrooms, 

with youth and other civic groups, and at community events nationwide. The number of RPCVs enrolled in the 

Fellows/USA graduate program reached an all-time high and the program added six new universities. RPCVs 

also served as cultural resources to support Peace Corps recruiters when they hosted informational meetings 

with potential applicants to Peace Corps. 

The number of schools reached through the agency-sponsored program to match RPCVs with schools 

requesting speakers fell slightly below the target due primarily to inflated baseline figures that included onetime focused events for groups such as the Girl Scouts. 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 49

Performance Section

Strategic Goal 4: Provide Volunteers who represent the diversity of Americans to meet the 

evolving technical needs of host countries.

The Peace Corps is charged with helping host countries meet their needs for trained men and women. Essentially, the agency must recruit the “supply” to meet the “demand” for specific skill sets. Thus, it is important 

to have well refined systems in place to help synchronize the recruitment of individuals with appropriate skill 

sets with the evolving technical needs of host countries throughout the world. Moreover, since the agency also 

has a critical cross-cultural component to its mission, it is important that the Volunteers recruited reflect the 

rich diversity of America.

The Volunteer Delivery System (VDS) is the continuous cycle of Volunteer recruitment, screening, and 

placement that allows the Peace Corps to deliver the best qualified Volunteers to meet the needs of the agency’s 

host countries. The Peace Corps has strategically aligned its VDS with the agency’s mission, modernizing its 

processes to speed up the delivery process and to reach diverse groups more effectively. 

Peace Corps Volunteers are the face of America in the communities in which they serve. When Volunteers reflect 

the rich diversity of our multicultural society, they help their host communities gain a better understanding 

of the United States and the values of the American people. Furthermore, more experienced Volunteers often 

bring skill sets and life experience that can also bring a different perspective to host communities. 

Outcome Goals:

4.1 Volunteers provided at every post meet the evolving technical needs of host countries.

4.2 Trainees assigned to serve overseas represent the diversity of Americans.

Performance Goal 4.1.1: 

Recruit Volunteers who balance the needed manpower and technical needs at posts with the available 

applicant pool and its skills. 

Agency Level Performance Indicators: 

Performance Indicators 4.1.1 FY 09 Target FY 09 Result

a. Maximize the number of Volunteers serving annually based on 

available funding and the provision of support to ensure their 

optimal effectiveness

7,300 7,671

b. At least 95% of the number of trainees and skills sought annually 

are met 95% 96%

Results and Analysis:

The agency achieved its target for the number of Americans serving in the field at the end of the fiscal year, with 

7,671 Volunteers serving in 68 posts worldwide. In FY 2009, 3,694 new trainees were sent around the world, 

and almost every one met the specific request of a host country. The agency continues to find ways to balance 

the supply and demand of Volunteers in order to best serve its partners abroad.

Volunteer on-board strength in FY 2009 was slightly lower than in FY 2008. This decrease was largely due 

to budget constraints that forced the agency to trim training classes in order to maintain quality and support 

Volunteers already in the field. As such, the agency took FY 2009 as an opportunity to reflect on how best to 
50 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

ensure quality growth and strong Volunteer support in order to expand training input to overseas posts in FY 

2010 and beyond.

Headquarters works closely with overseas posts and the regions to best match the supply of qualified applicants 

to the needs of our overseas partners. The majority of positions requested by the overseas posts are directly 

matched by individuals with the requested skills. 

The degree to which Volunteers’ skills meet host country needs is corroborated by information in the agency’s 

impact evaluations, gathered from host country partners. In the evaluations, partners were asked to comment 

on the extent to which Volunteers’ projects meet their needs. In three of four countries in which evaluations 

were conducted in FY 2009, the partners said the Volunteers met their needs to a large extent. In one country, 

the needs were met on a smaller scale.

Performance Goal 4.1.2: 

Manage Volunteer recruitment functions in an effective and efficient manner.

Agency Level Performance Indicators:

Performance Indicators 4.1.2 FY 09 Target FY 09 Result

a. Redesign the Volunteer Delivery System and implement 

recommendations to improve its effectiveness

Complete redesign 

of critical processes 

and prioritize 

implementation of 

recommendations

Achieved

b. Reduce the response time to applicants from 100 days in FY 2009 

to 80 days by the end of FY 2011 100 days 123 days

Results and Analysis:

The agency initiated a major effort to redesign the Volunteer Delivery System (VDS). This modernization 

will bring the Peace Corps into the 21st century with an integrated, efficient and comprehensive life cycle 

management system—from applicant to returned Peace Corps Volunteer (RPCV)—providing new and better 

tools to recruit and place highly qualified, service-oriented individuals. The first step, analysis of a redesign 

and prioritizing the implementation of recommendations, was completed in FY 2009. Plans are underway to 

develop and implement the first phase of the new system in FY 2010.

Customer service, in the form of responsiveness to interested Americans during the Peace Corps application 

process, has long been a priority. In FY 2009, the agency nearly achieved its target in response time by 

continuing to improve its internal business processes, improving technology use to track applicants, and 

automating steps whenever possible. The timeliness data analyzed in FY 2009 is even more accurate than 

in past years, which in turn uncovered faulty methodology for setting the baseline targets, one of the main 

reasons the target was not met. Thus, the improved data collection and analysis suggests that the baseline 

mapped to set the new targets may have been too aggressive based on poor data quality. The improved data will 

allow the agency to better monitor and make improvements in this area.

Performance Goal 4.2.1: 

Recruitment and Volunteer placement efforts reflect the diversity of Americans. 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 51

Performance Section

Agency Level Performance Indicators:

Performance Indicators 4.2.1 FY 09 Target FY 09 Result

a. Number of mid-career and age 50 and older applicants 1,500 2,041

b. Number of applicants of diverse ethnicities 2,100 3,070

Results and Analysis:

FY 2009 saw a second straight year of increased applications, with a total of over 15,000 (an all-time high in 

total applications since the agency went to electronic records). While the bulk of applicants are near college 

age, among those Americans desiring a chance to serve in the Peace Corps were a number of experienced 

individuals, as well as an increasingly diverse pool of applicants.

With the strong increase in total applications, the agency met its FY 2009 goals for both experienced and 

ethnically diverse applicants. The likely impetus for the increase in applications among this demographic is 

President Obama’s call to service and the continued efforts for the agency to recruit skilled and experienced 

Americans. In addition, results were seen from the combined efforts of agency field-based recruiters, strategic 

recruiters, and the strategic planning that consolidated the efforts on national outreach and diversity.

As the Peace Corps looks to build a more ethnic, skill-specific, and age diverse corps of Volunteers, the agency 

will employ broad-based recruiting efforts, strategic planning, and innovative marketing. The agency will use 

specific research data for appropriate targeting of messages to specific populations, such as students, diverse 

populations, and more mature audiences. Targeted skill-specific outreach will take place though industry 

associations, federal agencies, and campus communities.

Strategic Goal 5: Implement the Peace Corps mission in an effective and efficient manner 

through the provision of high quality Volunteer support with optimal health 

care, safety and security support, and effective management of resources. 

Peace Corps Volunteers serve at the grassroots level worldwide and experience the broadest range of social 

and environmental conditions, making health and safety risks an inherent part of Volunteer service. Staff 

and Volunteers work together to create a framework that maximizes, to the extent possible, Volunteers’ wellbeing, enabling them to focus on their work. Furthermore, the effective management of resources ensures an 

excellent level of support to Volunteers in all aspects of their service.

Volunteer safety and security is the agency’s highest priority. The agency has dedicated safety and security 

personnel at each post and headquarters who are part of an extensive safety and security support network. 

The agency enhances the safety and security of Volunteers by identifying risks, developing mitigation 

strategies, educating personnel, evaluating effectiveness, and incorporating feedback and appropriate policy 

revisions. Adequate training of staff and Volunteers and continual assessment are key factors in ensuring that 

Volunteers are well supported to carry out their work in a safe manner.

The agency is responsible for all aspects of a Volunteer’s health care during Peace Corps service. The Peace 

Corps provides a comprehensive Volunteer health care program that focuses on the delivery of high quality 

care and service and addresses both the physical and mental health of Volunteers. This includes training, 
52 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

access to counseling, and the provision of medical services. Peace Corps Volunteers work in very demanding 

environments; thus, the agency focuses on issues of Volunteer resiliency and coping with stress, especially since 

some Volunteers experience the emotional challenges of working with communities affected by HIV/AIDS. 

Effective management of Peace Corps’ domestic and overseas operations, including human and financial 

resources, is critical to carrying out the mission of the agency. The agency has a mechanism in place to send 

management assessment teams to support posts or offices in need of review and to make recommendations 

for improvement. Furthermore, the posts must work to integrate the many perspectives of their stakeholders 

—Volunteers, staff, and host country partners—in ensuring that their programs are on target and serving host 

country needs.

The Peace Corps strives for constant improvement to provide the most efficient and effective services to 

Volunteers, staff, host country partners, and in the fulfillment of its mission to the American people. In 

addition to the continual efforts to evaluate and enhance staff effectiveness throughout the agency, the Peace 

Corps regularly reviews its businesses processes. 

Outcome Goals:

5.1 Volunteers are safe, healthy, and well supported to ensure their focus on Peace Corps’ sustainable 

development and cross-cultural mission.

5.2 Peace Corps continually improves its staff and critical work processes and manages its resources in an 

effective and efficient manner.

Performance Goal 5.1.1: 

Enhance the safety and security of Volunteers.

Agency Level Performance Indicators:

Performance Indicators 5.1.1 FY 09 Target FY 09 Result

a. Percentage of Volunteers reporting that their safety and security 

training is adequate or better 95% 96%

b. Percentage of posts having their safety and security plans reviewed 

annually by Peace Corps safety and security officers 33% 21%

c. Percentage of posts implementing critical recommendations focused 

on Volunteer/trainee safety and security on a timely basis 100% 84%

d. Percentage of Volunteers reporting they feel “usually safe” or “very 

safe” where they live and work 90% 89%

Results and Analysis:

In FY 2009, 82 percent of the posts worldwide received visits from Peace Corps safety and security officers 

(PCSSOs). For much of the year, two positions were vacant in the field, which led to the agency not meeting the 

goal of PCSSOs carrying out full safety and security assessments at 33 percent of posts. It can be expected, 

however, that the agency will be able to meet a much higher percentage of full post assessments in FY 2010, as 

most of the remaining posts have already substantially met the requirements.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 53

Performance Section

The percentage of Volunteers who rated their pre-service safety and security training as “adequate” to “very 

effective” was 96 percent, exceeding the goal set for FY 2009 (95 percent). Additionally, the percentage of 

Volunteers reporting that they feel safe where they live and work was 89 percent, missing the targeted goal for 

FY 2009 by less than 1 percent.

While the agency goal of 100 percent implementation of PCSSO recommendations was not met, the agency 

achieved an implementation rate of approximately 84 percent. It is anticipated that the few unresolved 

recommendations will be cleared within the first months of FY 2010. 

Performance Goal 5.1.2: 

Provide quality medical and mental health services to trainees and Volunteers.

Agency Level Performance Indicators:

Performance Indicators 5.1.2 FY 09 Target FY 09 Result

a. Percentage of Volunteers rating their satisfaction with health care 

received from Peace Corps medical officers as adequate or better 90% 93%

b. Percentage of Volunteers reporting the emotional support received 

from Peace Corps staff as adequate or better 70% 81%

c. Percentage of Volunteers reporting adequate or better support in 

coping with stress issues of HIV/AIDS in their community 60% 73%

Results and Analysis:

The health of Volunteers is one of the agency’s top priorities, with individuals serving around the world in a 

variety of challenging environments. Volunteer satisfaction is just one of many components of health that the 

agency monitors and evaluates. 

Further, the Peace Corps is working to utilize information technology to create an integrated health 

information management system. This will enhance the agency’s ability to provide exceptional customer 

service and an effective and efficient Volunteer health system from the application process through the postservice phase of a Volunteer’s experience.

As with safety and security, the health of the Volunteer is a major focus of the Peace Corps staff. The agency 

exceeded its targets on all three indicators, showing Volunteers feel satisfied with the health support they 

receive from the Peace Corps. The fact that satisfaction is high is significant. The Peace Corps works to ensure 

that the quality of physical and mental health care provided to Volunteers remains high and that the quantity 

is appropriate.

In open-ended responses in the annual Volunteer survey, Volunteers expressed satisfaction with the resources 

that Peace Corps staff have in place to cope with stress issues.  A Volunteer in Eastern Europe said, “Peace 

Corps has made me well aware that there are extensive networks in place for me to use and have made sure that 

I am aware of how to get in contact with the right people.” A Volunteer in Africa said, “They do make sure we 

know ways to overcome food insecurity at least in our compounds. They also treat HIV/AIDS very seriously.”  

Further, 80 percent of the Volunteers said they were satisfied with the time and resources that Peace Corps 

allocates to issues of mental health. 
54 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

Performance Goal 5.2.1: 

Provide effective and responsive financial management that accurately reflects domestic and overseas 

operations. 

Agency Level Performance Indicators:

Performance Indicators 5.2.1 FY 09 Target FY 09 Result

a. Percentage of posts and headquarters offices managing resources 

within approved budgets and operational plans 95% 83%

b. Percentage of posts and headquarters offices annually reviewing 

resource management ratios for improvement 95% Not fully 

implemented

Results and Analysis:

New to the FY 2009-2014 Strategic Plan are indicators focusing on financial management of the agency. 

An important component to the quality growth and support of Volunteers, fiscal responsibility is an agency 

priority. 

All major offices and overseas posts are required to operate within their approved budgets and plans. In this 

first year of measuring this indicator, overseas posts, in general, met their targets. Major domestic offices were 

under budget due mainly to unfilled staff positions caused by budget challenges early in the year and to staff 

departing and not being replaced with the arrival of a new administration. 

In FY 2008, the agency began a systematic review of resource management ratios in order to identify and 

monitor efficiency and effective management. Each department began a review, analyzed its operations and 

identified the best measurements for their particular organization. The process was not completed in time 

to implement during FY 2009, so the agency will review and implement the ratios during FY 2010 and report 

results in next year’s performance report.

Performance Goal 5.2.2: 

Ensure the effective management of Peace Corps resources. 

Agency Level Performance Indicators:

Performance Indicators 5.2.2 FY 09 Target FY 09 Result

a. Percentage of post projects engaging host country officials in their 

formulation and implementation 95% 94%

b. Percentage of posts and headquarters offices with documented 

personnel practices that include staff development, performance 

management, and awards and recognition policies

70% 56%
The Peace Corps :: performance and acco untability report :: fiscal year 2009 55

Performance Section

Results and Analysis:

The agency fell just below the target for engaging host country officials in project design and implementation. 

Peace Corps executes a memorandum of understanding with the host country when entering a country. This 

indicator measures the degree to which this initial step of collaboration continues as the projects unfold. A 

frequent vehicle for engaging local stakeholders is the process of identifying where a Volunteer will work and 

what activities they will undertake. Another productive area for engaging local partners comes during joint 

training, with supervisors, partners, and Volunteers learning together. 

The project advisory committee is an established practice at Peace Corps as a method to engage host country 

partners with staff and Volunteers. This ensures continuing dialogue over the life of a project. Formal briefings 

are often appropriate for higher level officials and were mentioned by some posts as an additional method for 

engaging officials.

Budgetary constraints restricted the number of project advisory committee meetings some posts could 

convene and they relied, instead, on informal dialogues through phone conversations, focus groups, and other 

informal meetings with stakeholders. Frequent turnover in government agencies was also mentioned as a 

constraint by a few posts. 

The agency did not achieve the target for documenting personnel practices. Fifty-six percent of the agency’s 

operating units have documented practices in the three major areas of human resource management—

performance, staff development, and awards. An additional 22 percent have documented practices in two of 

the three required areas. Headquarters staff operated under guidance from the human relations staff and the 

Peace Corps Manual section policy. Overseas posts operate in compliance with the local laws and regulations 

of each country. Nevertheless, in FY 2010 the agency will convene a working group to review and make 

recommendations on how posts can meet the requirements of this indicator.

Performance Goal 5.2.3

Review and improve critical Peace Corps work processes to ensure optimal performance.

Agency Level Performance Indicator: 

Performance Indicator 5.2.3 FY 09 Target FY 09 Result

a. Annually review, streamline, and implement improvements to at least 

one agency mission critical process

Minimum of 

one critical 

process per 

year

Achieved

Results and Analysis:

The Peace Corps, in its work to review and make changes to the cross-cutting agency processes, has ensured 

that the proper communication mechanisms and advisory councils are in place to review and recommend 

improvements to its programs. Several critical processes were reviewed by the agency during FY 2009.

Three areas of focus were listed in the FY 2009 Strategic Plan: the Volunteer Delivery System, a review of 

the human resource management strategy, and a review of the logistics of the medical supply inventory of the 

agency.
56 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

The first contribution to this performance measure is the completion of the new online Volunteer 

application, which contains a more comprehensive and visible understanding of the skills sets needed, clearer 

communication of the expectations of service and core values, and increased transparency of the medical 

clearance process. These changes will have a positive impact on many aspects of agency business.

The second set of processes reviewed relate to human resource management. The agency reviewed the processes 

for position management, performance appraisal management, professional development, recruitment, and 

continuity of information and guidance for organizational administrative staff. A number of changes were 

implemented. Posted on the agency Intranet were a comprehensive list of low- and no-cost training resources 

for use by employees and management; refreshing and standardizing position descriptions of record; and 

innovative recruitment practices (such as shortened and streamlined questionnaires for gathering applicant 

qualifications, sending out recruitment “tweets” on Peace Corps’ Twitter site, analyzing applicant and manager 

surveys on the applicant process, and tracking results of recruitment events). 

The third process review was to improve the way the agency procures medical supplies (drugs, vaccines, 

nonprescription drugs). Medical supplies make up one of the agency’s largest procurement categories.  A 

survey of all posts was conducted to determine current sources of supplies, as well as the availability and 

cost of supplies from local sources and regional or third-country sources. The purpose of the survey was to 

determine if using regional supply sources and relying less on the headquarters would produce cost-savings 

(save money, shorten lead times, and improve fulfillment rates). The data are being analyzed to determine if it 

is appropriate to consider establishing regional supply sources.

Education Volunteer, Cambodia
The Peace Corps :: performance and acco untability report :: fiscal year 2009 57

Performance Section

Annual Volunteer Survey

The Annual Volunteer Survey is administered by Peace Corps to ascertain Volunteers’ judgments concerning 

their service. The survey results provide a candid, comprehensive picture of the activities, experiences, and 

views of currently-serving Volunteers. A primary focus of the survey is on Volunteers’ perceptions of the 

extent to which their assignments have built local capacity and produced impact for the three goals of Peace 

Corps. Survey questions also cover several topics not covered in other assessments, such as questions about 

preparing for Peace Corps, challenges Volunteers face, and what they see as the best aspects of their service.  

The survey uses online software to collect survey responses in a cost-effective manner.  Survey results are 

disseminated shortly after the survey is completed, providing timely Volunteer feedback for headquarters’ and 

posts’ staff to evaluate and improve Peace Corps’ programs.

Findings

Goal 1:

•	 Most Volunteers report achieving the short-term goals: achieving their primary assignment objectives 

and transferring skills to the people with whom they work. 

•	 Many Volunteers work with young people and are involved in HIV/AIDS efforts, two activities likely to 

yield long-term capacity-building benefits for their host country communities. 

•	 Volunteers expressed concerns about being fully prepared to do their Peace Corps jobs (Goal 1) and have 

requested additional training on working with host country counterparts, mastering the local language(s), 

and performing technical aspects of their work.

Goal 2 and Goal 3:

•	 Volunteers are achieving the Peace Corps’ Goal 2 and Goal 3. 

•	 Through their work and interaction with their communities, Volunteers promote cross-cultural 

understanding, among host country individuals, about Americans, often helping to dispel stereotypes. 

•	 With better access to technology and communications, most Volunteers are able to electronically 

communicate with other Americans in the United States about life in their host country. 

Overall Volunteer Satisfaction

•	 Volunteers who have been in-country longer than a year are generally more satisfied, more likely to make 

the same decision about joining Peace Corps, and more confident about achieving Peace Corps goals.

•	 Volunteers most often mentioned stress from the challenges of cross-cultural issues, their primary 

assignment, isolation/loneliness, and the local language. 

Field-Based Impact Evaluations of Goal 1 and Goal 2

The Office of Strategic Information, Research, and Planning conducts field-based evaluations to collect 

information directly from host country nationals. The purpose of the studies is to measure the impact of Peace 

Corps on host country nationals in two of the agency’s core goals. The pilot evaluations began as part of the 

Peace Corps Improvement Plan, conducted in three countries in FY 2008, creating a baseline for future years. 

 

Program Evaluation

0
58 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

Locally-contracted researchers conduct interviews in the local language(s) with counterparts, beneficiaries, 

and host families, within a set of randomly selected communities where Volunteers have served. This approach 

ensures that the information on the impact of the Volunteers’ work is gathered from the most direct sources: 

host country individuals who have worked with, interacted with, or lived with Volunteers. These individuals 

are asked questions about the personal and community changes attributable to the Volunteers’ work. The 

respondents are also asked about second goal impacts—whether and in what ways have they gained a better 

understanding of Americans. 

The information is informing the agency on the extent to which host country nationals who work and live with 

Peace Corps Volunteers think the Volunteers are

•	 transferring tangible skills

•	 promoting sustainable development

•	 fostering positive relationships with host country nationals 

•	 promoting cross-cultural understanding

Features of the Host Country Impact Studies

1. Cost efficiency through electronic transfer of documents and use of a Web-based data entry 

system that allows real time access to interview protocols and interview data

2. Additional cost efficiency and cultural sensitivity through the use of in-country research 

teams for data collection 

3. Integration of best practices in cross-cultural research, structured interview methods, qualitative 

analysis, and data quality control

4. Overall quality control through use of a continuous feedback loop to monitor the study process

5. Collaboration among posts, country desk units, regional training staff, and headquarters

Results

In FY 2009, nine studies were initiated in Bulgaria, Burkina Faso, Cameroon, Jamaica, Mexico, Morocco, 

Nicaragua, and Tanzania. 

The preliminary results from 528 host country individuals in four countries (Bulgaria, Burkina Faso, 

Nicaragua, and Romania) are presented below. 

Goal 1: Capacity Building and Skill Transfer

•	 99 percent of counterparts report using, in their work lives, the knowledge and/or skills gained through 

their work with the Peace Corps. Sixty-nine percent use them daily.

•	 92 percent of counterparts and beneficiaries report using, in their personal lives, the knowledge and/or 

skills they gained through their work with the Peace Corps. Seventy percent use them daily.

•	 82 percent of host country national (HCN) counterparts and 84 percent of HCNs overall were very 

satisfied with the changes that resulted from their work with the Peace Corps. 

•	 95 percent of respondents reported they would definitely want to work with another Peace Corps Volunteer.

•	 98 percent of respondents reported that the positive changes which resulted from the Peace Corps work 

have been maintained to some degree after the departure of the Volunteer. Seventy-nine percent said that 

the changes were either “largely” or “completely” maintained.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 59

Performance Section

Goal 2: Promoting a Better Understanding of Americans

•	 84 percent of HCN counterparts and 86 percent of HCNs overall reported that, after working with Peace 

Corps Volunteers, their views about people from the United States were more positive.

•	 87 percent of host family members said that, after living with Peace Corps Volunteers, their views about 

people from the United States were more positive. 

•	 Respondents’ attitudes toward Americans moved from a limited understanding of Americans before 

interacting with a Volunteer to a moderate understanding of Americans afterwards. 

Education Volunteer, Malawi
60 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

Summary of Performance Evaluations by Goal

Summary of Major FY 2009 Program Evaluations and Studies

Name of 

Report Goal Issue Findings and Recommendations Agency’s Response

Host 

Country 

Studies

2 The evaluation studies 

were developed as 

part of the Peace Corps 

Improvement Plan. In 

FY 2008, the agency 

piloted studies in three 

countries to measure 

the promotion of a 

better understanding of 

Americans on the part 

of the peoples served. 

During FY 2009, the 

agency continued and 

expanded these efforts 

to an additional nine 

posts. 

The findings reveal 

that the Peace Corps 

is promoting a better 

understanding of 

Americans among 

the peoples served. 

Eighty-six percent of 

respondents reported 

improved views of 

Americans and the 

average self-reported 

level of understanding 

increased from “limited” 

to “moderate.”

The scores vary across 

respondent types and 

countries.

It is recommended that 

additional studies be 

conducted.

Pilot reports were 

submitted in December 

2008. The agency 

authorized the 

expansion of the studies 

to include an additional 

nine posts per year 

through 2011.

Individual country 

programs adjusted 

Volunteer cross-cultural 

training programs 

to include findings 

from host families 

and partners on host 

country nationals’ 

perceptions of 

Americans.

1 The studies query host 

country nationals, 

both partners and 

beneficiaries, about 

the extent to which the 

work of the Peace Corps 

has met their need for 

trained men and women 

and built local capacity 

in a sustainable way. 

The studies suggest that 

HCNs are gaining useful 

skills and knowledge, 

are able to maintain the 

changes which result 

from their work with 

the Peace Corps, and are 

satisfied with the work 

conducted.

Based on the limited 

number of sites 

and project types 

examined to date, it 

is recommended that 

additional studies be 

conducted to allow 

for analysis by region, 

project sector, and 

respondent type.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 61

Performance Section

Office of Inspector General Audits and Evaluations

The Peace Corps’ Office of the Inspector General (OIG) regularly conducts audits and evaluations on the 

effectiveness of programs that support Volunteers. Auditors focus on fiscal accountability and effectiveness 

of internal controls over Peace Corps resources. Evaluators analyze the program operations of the Peace 

Corps at both overseas posts and domestic offices. These audits and evaluations analyze compliance with 

laws, regulations, and Peace Corps’ policies, in addition to identifying internal control weaknesses and best 

practices, and recommending program improvements and the means to comply with Peace Corps policies. 

During FY 2009, the OIG issued eight audit reports and six program evaluation reports concerning 13 

countries. The audit reports related to administrative and financial operations at overseas posts. Other audit 

work included the Peace Corps purchase card program and oversight of the independent auditor’s annual audit 

of the agency’s financial statements and the Federal Information Security Management Act.

The evaluations were conducted in the Dominican Republic, Ghana, Guyana, and Nicaragua. The program 

evaluations address issues such as the extent to which the post has developed and implemented programs 

and provided adequate support and oversight to Volunteers to enable them to increase host country capacity 

and promote cross-cultural understanding. Reports from these audits and evaluations are submitted to 

management, which then takes appropriate action to address any concerns that have been identified.

Program Evaluations Completed by the Office of the Inspector General

Country Major Findings and Recommendations

Dominican Republic •	 Strong, committed leadership and able management

•	 Satisfied and meaningfully engaged Volunteers

•	 Excellent training resources

•	 Need alignment of post performance management system with 

Volunteer reporting tool

•	 Need standardized site selection criteria and housing safety and 

security criteria 

•	 Need improved completion and standardization of site locator forms

Ghana •	 Strong program with knowledgeable and competent staff

•	 Very effective in working relationships with project partners and in 

process of identifying Volunteer counterparts

•	 Peace Corps’ Volunteer leaders did not have primary projects that 

comply with Peace Corps policy

•	 Volunteers were not regularly submitting performance reports

•	 Need improved in-person site development, including Volunteer 

housing and early identification of language 

•	 Adapt language training and the in-service training curriculum to 

better meet Volunteers’ needs

•	 Improve consistency of Volunteer support
62 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Performance Section

Program Evaluations Completed by the Office of the Inspector General

Country Major Findings and Recommendations

Guyana •	 Struggled with low Volunteer satisfaction and poor staff performance

•	 Areas in need of improvement include training, medical access controls, 

and housing criteria

•	 Need regular performance appraisals, and must address problems with 

staff turnover, morale, and a lack of clarity on roles and responsibilities 

for key programming activities, such as site development

•	 Post needs to remain focused on improving current programming and 

operations before exploring expansion efforts

•	 Numerous staff members and regional leaders have worked with 

the post to strengthen its programming and processes and improve 

Volunteer satisfaction and retention

•	 Significant improvements have been made in the areas of programming, 

quality of staff, and relationships between the staff and Volunteers

Nicaragua •	 Post benefits from engaged leadership and resourceful team to enable 

Volunteers to serve effectively

•	 Volunteers rated their training as very effective and were satisfied with 

the staff support they received

•	 Emergency action plans could have enhanced information on 

consolidation points and post should eliminate discrepancies 

between the number of crime incidents recorded by the post and the 

headquarters

•	 In the area of support, issues were raised concerning the effectiveness 

of the Volunteer Advisory Council, medical confidentiality due to the 

physical limitations of the medical office, and inadequate Volunteer 

living allowances, though more information is needed
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f i nanc i a l s e ct i o n

 Youth Volunteer, Tonga
The Peace Corps :: performance and acco untability report :: fiscal year 2009 65

Financial Section

0

An unqualified (clean) audit opinion was earned by the Peace Corps during the FY 2009 financial statement 

audit. The financial statement opinion covered hundreds of thousands of annual transactions in 74 countries 

in more than 70 currencies, with 7,671 deployed Volunteers, nearly 3,000 staff members, and $340 million in 

appropriated financial resources. For the third consecutive year, no material weaknesses or federal system 

noncompliances were identified during the financial audit or otherwise within the agency. In addition to 

the clean audit opinion, the Peace Corps received the prestigious Association of Government Accountants’ 

Certificate of Excellence in Accountability Reporting for quality reporting in the FY 2008 Performance and 

Accountability Report. This is the second consecutive year for the award. Such achievements are the result of 

dedicated efforts by all who work in financial management and other operating areas throughout the regions, 

the posts, and within the headquarters. Each year the sound financial management foundation expands 

and grows stronger, and we expect to continue providing excellent service to our posts, Volunteers, and the 

communities served. As always, agency resources were managed effectively to meet the agency missions and 

goals within the appropriated funding level.

The significant deficiencies identified by the FY 2008 audit were monitored and controlled this fiscal year 

through the agency’s senior assessment team, the corrective action plan, and the work of the operational 

managers. Corrective actions, though, on some significant deficiencies remain to be completed in FY 2010 

despite the FY 2009 strong mitigation efforts. 

Though no material weaknesses were identified during the FY 2009 financial statement audit, two significant 

deficiencies were identified in our internal controls for the accounting business processes and the information 

system security controls. Those significant deficiencies and the supportive audit findings are addressed in 

Appendix 1, Summary of Audit Findings.

During FY 2009, the following financial management improvements benefitted our posts located worldwide, 

our three regions, and Peace Corps headquarters:

•	 Successfully negotiated with the Office of Management and Budget a $33 million increase in the President’s FY 2010 budget to Congress

•	 Obtained $6 million through the open obligation reviews by closing or adjusting open obligations in 

current and prior years’ (expired) funds

•	 Performed a mid-year review of all personal service overseas contracts and obligations to ensure posts 

were fully funding their obligations and to ensure delegations of authority were properly documented

•	 Provided Volunteers with a better personal property insurance plan

•	 Drafted a manual to uniquely assist the agency’s age 50 and older Volunteers with their special needs

•	 Automated the processes to manually download and distribute reports from the State Department

•	 Fully implemented the paper check conversion program for overseas posts to eliminate mailing checks, 

expedite check collections, and minimize time spent researching lost or returned checks

•	 Replaced the J.P. Morgan Chase prepaid debit card with the Citi Declining Balance Card used to cover 

per diem and other incidental payments to new Volunteers, significantly streamlining the process and 

reducing the vendor and administrative program costs

•	 Automated payment confirmations in the Odyssey financial system, thereby greatly reducing manual 

entry

Message from the Chief Financial Officer
66 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

•	 Incorporated key cashiering transactions (check replenishments, deposits, host country collections) into 

the Odyssey financial system, eliminating manual entry from an outside system

•	 Processed more than 284,000 transactions valued at $229.6 million for domestic and overseas payments

•	 Implemented prior year adjustment accounting at the detail level to provide greater visibility of upward/

downward adjustments by year

A new budgeting, planning, and forecasting software, Hyperion Planning/Essbase, was procured during FY 

2009, with design planned during FY 2010 and implementation scheduled for the fourth quarter of FY 2010. 

Additionally, we developed the Volunteer In-Country Allowance payment system which integrates all incountry payments within one system. The pilot is scheduled for the first quarter of FY 2010. 

Although the agency recognizes the benefits of formally correlating costs to the agency strategic goals and 

capturing costs by program, we do not yet have a cost accounting system capable of accurately capturing those 

costs. 

The most significant financial management issue facing the agency is how to improve operations and 

infrastructure to meet planned future Volunteer growth. 

The Peace Corps’ financial statements and notes that follow are both reliable and complete and were prepared 

in accordance with generally accepted accounting principles for federal government entities and by subjecting 

the statements to an independent audit.

While we are pleased with our FY 2009 accomplishments, my dedicated staff and I will pursue new financial 

management improvements, promote effective internal controls, and continually work toward securing future 

unqualified audit opinions on the agency’s financial statements.

Thomas Bellamy

Acting Chief Financial Officer

November 16, 2009
The Peace Corps :: performance and acco untability report :: fiscal year 2009 67

Financial Section

Peace Corps

Balance Sheet

As of September 30, 2009 and 2008

(In Thousands)

2009 2008

Assets

 Intragovernmental

 Fund Balance With Treasury (Note 2 and 3) 139,058$ 117,964$ 

 Accounts Receivable (Note 5) 878 635 

 Total Intragovernmental 139,936 118,599 

 Cash and Other Monetary Assets (Note 4) 40 40 

 Accounts Receivable, Net (Note 5) 17 26 

 General Property, Plant, and Equipment, Net (Note 6) 30,503 32,458 

 Other

 Prepaid Volunteer Living Allowances (Note 7) 3,863 4,304 

 Other Assets (Note 8) 2,485 2,541 

 Subtotal Other 6,348 6,845 

Total Assets 176,844$ 157,968$ 

Liabilities

 Intragovernmental 

 Accounts Payable 1,219$ 997$ 

 Other

 Unfunded FECA Liability (Note 9) 27,560 25,582 

 Other Liabilities (Note 10) 2 2 

 Subtotal Other 27,562 25,584 

 Total Intragovernmental 28,781 26,581 

 Accounts Payable 9,104 11,396 

 Federal Employee and Veterans Benefits (Note 9) 121,902 119,302 

 Other

 Other Employment Related Liability (Note 9) 5,629 14,436 

 Non-Entity Funds (Note 2) 40,060 31,947 

 Accrued Funded Payroll and Leave 5,346 4,252 

 Unfunded Annual Leave (Note 9) 7,237 7,600 

 Other Liability (Note 10) - 1,164 

 Subtotal Other 58,272 59,399 

 Total Liabilities 218,059 216,678 

Commitments and Contingencies (Note 11)

Net Position

 Unexpended Appropriations 80,239 68,274 

 Cumulative Results of Operations (121,454) (126,984) 

Total Net Position (41,215)$ (58,710)$ 

Total Liabilities and Net Position 176,844$ 157,968$ 

The accompanying notes are an integral part of these statements

0

Financial Statements
68 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

Peace Corps

Statement of Net Cost

For the Periods Ended September 30, 2009 and 2008

(In Thousands)

2009 2008

Program Costs:

 Gross Costs 327,233$ 361,036$ 

 Less: Earned Revenue (Note 12) 3,610 2,897 

Net Cost of Operations 323,623$ 358,139$ 

The accompanying notes are an integral part of these statements
The Peace Corps :: performance and acco untability report :: fiscal year 2009 69

Financial Section

Peace Corps

Statement of Changes in Net Position

For the Periods Ended September 30, 2009 and 2008

(In Thousands)

The accompanying notes are an integral part of the statements

2009 2008

Cumulative Results of Operations:

Beginning Balances (126,984)$ $ (117,982)

Adjustments

 Corrections of Errors 122 460 

Beginning Balances, As Adjusted (126,862) (117,522)

Budgetary Financing Sources:

 Appropriations Used 322,738 342,817 

Other Financing Sources (Non-Exchange):

 Transfers-In/Out Reimbursement 250 1,398 

 Imputed Financing (Note 16) 6,043 4,462 

Total Financing Sources 329,031 348,677 

Net Cost of Operations 323,623 358,139 

Net Change 5,408 (9,462)

Cumulative Results of Operations (121,454) (126,984)

Unexpended Appropriations:

Beginning Balances 68,274 81,586 

Adjustments

 Changes in Accounting Principles 3 - 

 Corrections of Errors (1) (2)

Beginning Balances, As Adjusted 68,276 81,584 

B dugetary Financin Fi g Sources: S

 Appropriations Received 340,000 333,500 

 Appropriations Transferred In/Out (2,000) - 

 Other Adjustments (3,299) (3,992)

 Appropriations Used (322,738) (342,818)

 Total Budgetary Financing Sources 11,963 (13,310)

Total Unexpended Appropriations 80,239 68,274 

Net Position (41,215)$ $ (58,710)
70 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

Peace Corps

 Statement of Budgetary Resources

For the Periods Ended September 30, 2009 and 2008

(In Thousands)

 Actual Transfers, Budget Authority (2,000) - 

 Direct 339,280$ 329,072$ 

The accompanying notes are an integral part of these statements

 Uncollected Customer Payments from Federal Sources, Brought Forward, October 1 840 (46) 

Recoveries of Prior Year Unpaid Obligations, Actual 7,778 - 

Change in Uncollected Customer Payments from Federal Sources 240 886 

Obligated Balance, Net, End of Period

 Unpaid Obligations 70,481 62,396 

 Uncollected Customer Payments from Federal Sources 1,081 840 

 Total Unpaid Obligated Balance, Net, End of Period 69,400$ 61,556$ 

 Net Outlays:

 Gross Outlays 326,716$ 341,835$ 

 Offsetting Collections 4,872 5,415 

 Net Outlays 321,844$ 336,420$ 

2009 2008

Budgetary Resources:

Unobligated Balance, Brought Forward, October 1 24,921$ 21,501$ 

Recoveries of Prior Year Unpaid Obligations, Actual 7,778 - 

Budget Authority

 Appropriation 340,000 333,500 

 Spending Authority From Offsetting Collections

 Earned

 Collected 4,872 5,415 

 Change in Receivables from Federal Sources 248 (14) 

 Change in Unfilled Customer Orders

 Without Advance from Federal Sources (8) 901 

 Subtotal 345,112 339,802 

Nonexpenditure Transfers, Net, Anticipated and Actual:

Permanently Not Available

 Cancellations of Expired and No-Year Accounts 3,252 1,290 

 Enacted Reductions - 3,808 

Total Budgetary Resources 372,559$ 356,205$ 

Status of Budgetary Resources:

Obligations Incurred:

 Reimbursable 3,299 2,212 

 Subtotal 342,579 331,284 

Unobligated Balance:

 Apportioned 22,829 13,127 

Unobligated Balance Not Available 7,151 11,794 

Total Status of Budgetary Resources 372,559$ 356,205$ 

Change in Obligated Balance: i Obli t d B l

Obligated Balance, Net

 Unpaid Obligations, Brought Forward, October 1 62,396$ 72,947$ 

 Total Unpaid Obligated Balance, Net 61,556 72,993 

Obligations Incurred, Net 342,579 331,284 

Gross Outlays 326,716 341,835 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 71

Financial Section

Note 1 Significant Accounting Policies

a) Reporting Entity 

The Peace Corps was initially established by President John F. Kennedy pursuant to Executive Order 10924 on 

March 1, 1961, and was subsequently formalized by the Peace Corps Act of 1961.The Peace Corps is an independent agency within the executive branch of the United States government.

The core mission of the Peace Corps is to promote world peace and friendship by making available to interested, less developed countries men and women of the United States qualified for service abroad and willing to 

serve, even under conditions of hardship if necessary. The Peace Corps’ goals are to help the people of interested countries in meeting their need for trained men and women; to help promote a better understanding of 

Americans on the part of the peoples served; and to help promote a better understanding of other peoples on 

the part of Americans. 

b) Basis of Presentation

The financial statements present the financial position, the net cost of operations, and changes in net position 

along with budgetary resources activities of the agency pursuant to the requirements of 31 U.S.C. 3515 (b). 

They have been prepared using Peace Corps’ books and records in accordance with agency accounting policies, the most significant of which are summarized in this note. The statements are in addition to the financial 

reports used to monitor and control budgetary resources, which are prepared from the same books and records. 

The statements are presented in accordance with the applicable form and content requirements of OMB Circular A-136, Financial Reporting Requirements, issued June 2009. The statements should be read with the realization that they are for a component of the U.S. government, a sovereign entity. 

The Peace Corps’ accounting policies follow Federal Accounting Standards Advisory Board standards and 

other generally accepted accounting principles for the United States federal government.

The financial statements are subdivided in two categories: intragovernmental and public. The intragovernmental balances, revenues, and costs reflect financial transactions between the Peace Corps and other federal 

agencies. Public activities are those with non-governmental customers, including Volunteers, contributors, 

employees, contractors, and vendors. 

Federal Financial Statements 

Statement Federal Objective 

Balance Sheet Reflects the agency’s financial position as of the statement date. The assets are the amount of future economic 

benefits owned or managed by the agency. The liabilities are amounts owed by the agency. The net position is 

the difference between the assets and liabilities. 

Statement of 

Net Cost 

Shows separately the components of the net cost of the agency’s operations for the period. Net cost is equal to 

the gross cost incurred by the agency less any exchange revenue earned from its activities. 

Statement of 

Changes in 

Net Position 

Explains how the net cost for the agency’s operations was funded, and reports other changes in equity that are 

not included in the Statement of Net Cost. It reflects the changes in both the proprietary and the budgetary activities through the respective components: Cumulative Results of Operations and Unexpended Appropriations. 

Statement of 

Budgetary 

Resources 

Provides information about how budgetary resources were made available as well as their status at the end of 

the period. It is the only financial statement exclusively derived from the agency’s budgetary general ledger in 

accordance with budgetary accounting rules. 

c) Basis of Accounting 

Accounting principles encompass both accrual and budgetary transactions. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to 

receipt or payment of cash. Under the budgetary basis, however, fund availability is recorded based upon legal 

considerations and constraints. The agency receives financing sources through direct appropriations from the 

general fund of the U.S. Treasury to support its operations. This financing source—appropriations used—is 

recognized to the extent that appropriation authority has been applied against received goods and services. 

0

Notes to the Financial Statements
72 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

d) Fund Accounting Structure 

The agency’s financial activities are accounted for by U. S. Treasury Appropriation Fund Symbol. They include accounts for appropriated funds and other fund groups described below for which the Peace Corps maintains financial records. 

General Funds—These funds consist of the receipts and expenditures by the government that are not earmarked by law for a specific purpose and used to fund agency operations and capital expenditures. 

Special or Trust Funds—These funds consist of receipts and expenditures by the government for carrying out 

specific purposes and programs in accordance with terms of the statute that designates the fund as a special 

fund or trust fund. The balances in the agency’s trust funds are non-entity assets and are included in the financial statements. 

Deposit Funds—These funds consist of monies held temporarily by the Peace Corps as an agent for others. 

These include allowance and allotment accounts for employees and Volunteers. The balances in these funds 

are non-entity assets and are included in the financial statements.

General Fund Receipt Accounts—These funds consist of monies collected by the Peace Corps that are returned to the U.S. Treasury and not available for Peace Corps’ use. 

e) Budget Authority 

Congress annually passes multi-year appropriations that provide the agency with authority to obligate funds 

over a two-year period for necessary expenses to carry out operations. After the right to create new obligations 

has expired, this two-year budget authority is available for five additional years to complete the liquidation of 

open obligations, advances, and receivables. After the five-year period, all open transactions for the respective 

fiscal year will be cancelled and funds will be returned to the U.S. Treasury. Any valid claims associated with 

these funds after closure must be processed against current year funds.

In addition, Congress enacts no year appropriations that are available until expended. All appropriations are 

subject to OMB apportionment as well as Congressional restrictions. The agency places internal restrictions to 

ensure the efficient and proper use of all funds.

f) Revenues and Other Financing Sources 

Peace Corps operations are financed through appropriations, proceeds from the sale of property, and interagency agreements. For financial statement purposes, appropriations are recorded as a financing source and 

reported on the Statement of Changes in Net Position at the time they are recognized as expenditures. 

g) Fund Balance with the Treasury 

The Fund Balance with the U. S. Treasury consists of appropriated funds that are available to pay current liabilities and finance authorized purchase commitments, and special funds that periodically are direct-financing 

reimbursements to the appropriated funds.

The agency does not maintain cash in commercial bank accounts for the funds reported in the balance sheet.

All cash receipts and disbursements are processed by the U.S. Treasury or the Department of State (DOS). 

The funds that make up post cashiers’ imprest funds belong to the U.S. Treasury through DOS’s accountability. These funds are routinely used to pay for small-value purchases of goods and services and are also used to 

make an occasional emergency payment. Per agreement with DOS, the Peace Corps is responsible for paying 

for any losses incurred by the cashiers that would normally fall on the account holder. All international payments made by DOS on behalf of the Peace Corps are charged to the Peace Corps and reduce the applicable 

Peace Corps appropriation unexpended balance in U.S. Treasury records. As of September 30, 2009 cashier 

imprest funds represented by cash on hand, checks on hand, interim advances, and cashier checking account 

balances totaled approximately $1.6 million in U. S. dollar equivalents. 

At any point in time, the posts have U. S. dollar equivalents and local currency checks in their possession that 

are awaiting delivery to the payees/vendors. These checks were recorded as disbursements on Peace Corps and 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 73

Financial Section

U.S. Treasury records in the month the checks were issued. As of September 30, 2009, these checks totaled 

approximately $8.4 million in U. S. dollar equivalents. 

Fund balance with Treasury is carried forward until such time as goods or services are received and payment 

is made, or until the funds are returned to the U.S. Treasury.

h) Foreign Currency 

Accounting records for the agency are maintained in U.S. dollars, while a significant amount of the overseas 

expenditures are in foreign currencies. For accounting purposes, overseas obligations and disbursements are 

recorded in U.S. dollar equivalents based on the budgeted rate of exchange as of the date of the transaction. 

Foreign currency payments are made by the U.S. disbursing officers located at the Department of State Financial Service Centers in Charleston, South Carolina; and Bangkok, Thailand. 

i) Accounts Receivable 

Accounts receivable includes amounts due from other federal entities and from current and former employees 

and Volunteers. Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material amounts of nonfederal (public) debt exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined that the amounts are more likely than not to be totally 

uncollected. Accounts with approved payment plans in place and for which the debtor is meeting the terms of 

the plan are exceptions to this write-off policy.

j) Advances and Prepayments 

Payments in advance of the receipt of goods and services are recorded as advances and recognized as expenses 

when the related goods and services are received. Advances are made principally to agency employees for 

official travel and prepayments to Volunteers for living allowances. 

Pursuant to Section 5(b) of the Peace Corps Act, Peace Corps Volunteers are entitled to a living allowance in 

order that they may serve effectively and safely overseas. Living allowances are paid to Volunteers to provide 

support while in their country of assignment. Allowances, which are based on local living standards and costs, 

include food, clothing, household items, rent, utilities, and local transportation.

k) Property, Plant, and Equipment (PP&E) 

The agency capitalizes property, plant, and equipment that has an individual acquisition cost of $25,000 or 

greater, a useful life of two years or more, not intended for sale in the ordinary course of business, and intended to be used or available for use by the entity. Aggregate purchases of general property, plant, and 

equipment in the amount of $500,000 or greater are capitalized. Software purchased for $25,000 or developed 

for internal use at a cost of $25,000 or greater is capitalized and amortized over its expected life (currently 3 to 

9 years). Vehicles in the amount of $10,000 and over are capitalized. Acquisitions that do not meet these criteria are recorded as operating expenses. Assets are capitalized at historical cost and depreciated using the 

straight-line method. The agency has established a policy that uses an estimated salvage value of 40 percent 

for the agency’s vehicles based on their resale value in recent years. 

The agency does not own any real property. Nonexpendable personal property is depreciated over 3 to 15 

years. The agency operates land, buildings, and equipment that are provided by the General Services Administration. Rent for this property is expensed. Deferred maintenance amounts are immaterial with respect to the 

financial statements. 

l) Accounts Payable and Other Liabilities 

Liabilities represent the amount of monies or other resources that are likely to be paid as the result of a transaction or event that has already occurred. Liabilities classified as not covered by budgetary resources are liabilities for which appropriations have not been enacted.
74 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

m) Employee Benefits 

I. Federal Employees Compensation Act (FECA) Accrued Claims—FECA provides income and medical cost 

protection to covered federal civilian employees injured on the job, to employees who have incurred workrelated occupational diseases, and to beneficiaries of employees whose deaths are attributable to job-related 

injuries or occupational diseases through the Department of Labor (DOL). The FECA liability consists of two 

components. The first component is based on actual claims paid by DOL but not yet reimbursed by the Peace 

Corps. The Peace Corps reimburses DOL as funds are appropriated for this purpose, generally a two year lag. 

This is the liability for the actual claims paid by DOL to be reimbursed by the Peace Corps. 

II. Future Workers Compensation Benefits—The second component of FECA is the estimated actuarial liability 

for future benefit payments as a result of past events. This liability includes death, disability, medical, and 

miscellaneous costs. DOL determines this component annually, as of September 30, and the Peace Corps recognizes an unfunded liability to DOL for the estimated future payments. 

III. Accrued Leave—A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

employment terminates. Accrued annual leave is paid from future funding sources and is reflected as a liability not covered by budgetary resources. Sick and other leave is expensed as taken. 

IV. Employee Health Benefits and Life Insurance—The agency’s employees are eligible to participate in the contributory Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program. The agency contributes to each program to pay for current benefits. 

V. Post-Retirement Health Benefits and Life Insurance—Agency employees who may be eligible to participate 

in the Federal Employees Health Benefit Program and the Federal Employees Group Life Insurance Program 

could continue to do so during retirement. The Office of Personnel Management (OPM) has provided the 

agency with cost factors that estimate the true cost of providing the post-retirement benefit to current employees. The agency recognizes a current cost for these and other retirement benefits at the time of employment with the agency. The other retirement benefit expense is financed by OPM and offset by the agency 

through the recognition of an imputed financing source on the Statement of Changes in Net Position. 

VI. Employee Retirement Benefits—Peace Corps direct hire employees participate in one of three retirement systems: Civil Service Retirement System, Federal Employees Retirement System, or the Foreign Service Retirement and Disability System. Foreign Service National (FSN) employees at overseas posts who were hired 

prior to January 1, 1984, are covered under the Civil Service Retirement System. FSNs hired after that date 

are covered under a variety of local government plans in compliance with the host country’s local laws and 

regulations. 

The Peace Corps recognizes its share of the cost of providing future pension benefits to eligible employees 

throughout their period of employment. The pension expense not covered by budgetary resources is calculated using actuarial factors provided by OPM and is considered imputed cost to the agency. 

VII. Valuation of Host Country Resident Personal Service Contractor Severance and Retirement Liability—The

Peace Corps is generally liable for separation or retirement payments to eligible host country resident personal 

service contractors (PSCs) in countries that require payments under local labor laws. Until systems are in place to 

track this liability in a timely manner, the estimate of the current and future costs of the severance and retirement 

liability is determined annually. 

n) Commitments and Contingencies 

The agency is involved in various administrative proceedings, legal actions, and claims arising in the ordinary 

course of business. Contingencies are recognized as a liability when a future outflow or other sacrifice of resources is probable and measurable. 

o) Use of Estimates 

The preparation of financial statements required management to make some estimates and assumptions that af-
The Peace Corps :: performance and acco untability report :: fiscal year 2009 75

Financial Section

fect the reported amount of assets and liabilities, as well as the disclosure of contingent liabilities at the date of 

the financial statements and the amount of revenues and costs reported during the period. Actual results could 

differ from those estimates. 

p) Interest on Late Payments 

Occasionally, the agency incurs interest penalties on late payments. Such interest penalties are paid to the respective vendor in accordance with the guidelines mandated by the Prompt Payment Act, P.L. 97–177, as 

amended. 

q) Intragovernmental Net Costs 

The Statement of Net Cost is consolidated for the agency using a budget functional classification code. This

code is used to classify budget resources presented in the budget of the United States government per OMB.

The agency is categorized under budget functional classification code number 150—International Affairs.

Gross cost and earned revenues from other intragovernmental agencies (reimbursable agreements) fall under 

this code.

r) Adjustments to Maintain Inherent Account Relationship Integrity 

In order to correct the relationships between the proprietary and budgetary accounts, a high-level analysis was 

performed. Cash balances were adjusted to align with the U.S. Treasury fund balance to permit the agency to 

pass edit checks and submit FACTS II reports to Treasury. All of the adjustments for fiscal year 2009 were 

immaterial.

s) Allocation Transfer 

The Peace Corps is a party to allocation transfers with the Department of State as a receiving (child) entity. 

Allocation transfers are legal delegations by one agency of its authority to obligate budget authority and outlay 

funds to another agency. A separate fund account (allocation account) is created in the U. S. Treasury as a 

subset of the parent fund account (Department of State) for tracking and reporting purposes. All allocation 

transfers of balances are credited to this account, and subsequent obligations and outlays incurred by the child 

entity (Peace Corps) are charged to this allocation account as they execute the delegated activity on behalf of 

the parent entity. All financial activity related to these allocation transfers (e.g., budget authority, obligations, 

outlays) is reported in the financial statements of the parent entity, from which the underlying legislative authority, appropriations, and budget apportionments are derived. 

Note 2 Non-Entity Assets

Non-entity assets are composed of trust fund, special fund, deposit funds, and clearing accounts. These funds are 

not available for the use of the Peace Corps and are not part of the Peace Corps resources. The Peace Corps monitors collections, status, and distribution. Below, as information, are the U.S. Treasury fund balances of non-entity 

assets which are non-governmental. 

Non-Entity Assets 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Trust Fund 

 FSN Separation Liability Trust Fund $ 7,222 $ 7,349 

Special Fund 

 Host Country Residents Contractors Separation 

 Liability Fund 13,971 5,658 

Deposit Funds 

 Volunteer Readjustment Allowance 18,325 18,417 

 Volunteer Payroll Allotment Account (Payroll Savings 

 Bond Account) 

 11 14 

Clearing Accounts 531 509 

 Total Non-Entity Assets 40,060 31,947 

 Total Entity Assets 136,784 126,021 

 Total Assets $ 176,844 $ 157,968 
76 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

Note 2 Non-Entity Assets (Continued)

Trust Fund—The FSN Separation Liability Trust Fund represents the estimated accrued liability for separation 

pay (based on local labor law) of the FSN employees. 

Special Fund— Host Country Residents Contractor Separation Liability Fund represents the estimated accrued 

liability for separation pay (based on local labor law) of the personal service contractors.

Deposit Funds—The Volunteer readjustment allowance is an allowance earned by Volunteers for each month of 

satisfactory service and payable upon their return to the United States. The Volunteer payroll allotment account 

reflects the value of held U. S. government bonds purchased by the Volunteers through allotments from the readjustment allowance. The bonds allow the Volunteers to earn interest on their earnings while in service overseas. 

Clearing Accounts—The proceeds of sales funds represent cash received from the sale of assets, primarily vehicles, and available to be reinvested in a like-kind replacement purchase (e.g., proceeds from vehicle sales used to 

purchase replacement vehicles). 

Note 3 Fund Balance with Treasury 

Fund Balances 

September 30, 2009 

(in thousands) 

September 30, 2008 

(in thousands) 

Appropriated Funds $ 98,998 $ 86,017 

Total Non-Entity Assets (Note 2) 40,060 31,947 

Total $ 139,058 $ 117,964 

Status of Fund Balance with Treasury 

September 30, 2009 

(in thousands) 

September 30, 2008 

(in thousands) 

Unobligated Balance 

 Available $ 22,829 $ 13,127 

 Unavailable 7,151 11,794 

Obligated Balance Not Yet Disbursed 109,078 93,043 

 Total $ 139,058 $ 117,964 

The Fund Balance with Treasury is equal to the unobligated balance of funds plus the obligated balance not yet disbursed.

Available Unobligated Balance—Composed of apportionments available for allotment plus allotments available for 

obligation or commitment. 

Unavailable Unobligated Balance—Composed of unapportioned authority plus unobligated appropriation authority 

from prior years that is no longer available for new obligations. This latter authority is only available for adjustments 

to existing obligations. 

Note 4 Cash and Other Monetary Assets 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Total Cash and Other Monetary Assets $ 40 $ 40 

The cash balances represent imprest funds at headquarters held in U.S. currency. 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 77

Financial Section

Note 5 Accounts Receivable, Net 

Accounts Receivable as of 

September 30, 2009

(in thousands)

Accounts 

Receivable,

Gross 

Allowance for 

Doubtful Accounts 

Accounts 

Receivable,

Net 

Intragovernmental $ 878 $ - $ 878 

Other 17 - 17 

 Total $ 895 $ - $ 895 

Accounts Receivable as of 

 September 30, 2008

(in thousands)

Accounts 

Receivable,

Gross 

Allowance for 

Doubtful Accounts 

Accounts 

Receivable,

Net 

Intragovernmental $ 635 $ - $ 635 

Other 65 39 26 

 Total $ 700 $ 39 $ 661 

Intragovernmental receivables are due from other federal agencies for services provided per reimbursable agreements.

Other accounts receivable are due from nonfederal entities, consisting primarily of receivables from employees. 

Annually, a determination of the amount of the Allowance for Doubtful Accounts will be established for material 

amounts exceeding $30,000. The agency recognizes an Allowance for Doubtful Accounts when it is determined 

that the amounts of nonfederal (public) debts are more likely than not to be totally uncollected. An allowance was 

not established for the agency as of September 30, 2009. 

Note 6 General Property, Plant, and Equipment, Net

Components of Fixed Assets as of 

September 30, 2009

(in thousands)

Useful Life in 

Years 

Cost Accumulated 

Depreciation

Net Book Value 

General Property, Plant, and Equipment 5–10 $ 3,008 $ 2,716 $ 292 

Vehicles 5 19,657 6,002 13,655 

IT Hardware 3–15 12,789 8,001 4,788 

Leasehold Improvements 10 402 140 262 

Internal-Use Software 3–9 30,036 18,530 11,506 

 Total $ 65,892 $ 35,389 $ 30,503 

Components of Fixed Assets as of 

September 30, 2008

(in thousands)

Useful Life in 

Years Cost Accumulated Depreciation Net Book Value 

General Property, Plant, and Equipment 5–10 $ 2,983 $ 2,656 $ 327 

Vehicles 5 17,857 5,847 12,010 

IT Hardware 3–15 11,565 6,145 5,420 

Leasehold Improvements 10 402 100 302 

Internal-Use Software 3–9 29,366 14,967 14,399 

 Total $ 62,173 $ 29,715 $ 32,458 

As of September 30, 2009, Peace Corps fixed assets include internally developed software and those assets that are 

reflected as active in the property management databases. These assets are located at headquarters in Washington, 

D.C., the nine regional offices, and the overseas posts. 

Values for all assets other than internally developed software were obtained from data extracted from the databases. 

Values for internally developed software were derived from the most reliable available data for each system. There 

are no restrictions on the use or convertibility of General Property, Plant and Equipment owned by the Peace Corps. 
78 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

Note 7 Prepaid Volunteer Living Allowances 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Prepaid Volunteer Living Allowances $ 3,863 $ 4,304 

Prepaid Volunteer Living Allowances—Payments of Volunteer living allowances are made prior to the entitlement 

month so the posts can ensure timely payments of the allowances to the Volunteers. These payments are prepositioned so that Volunteers will not incur a financial burden for their living costs. 

Note 8 Other Assets 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Travel Advances to Employees $ 48 $ 82 

Relocation Advances to Employees 68 30 

Prepaid Property, Plant and Equipment - 94 

Prepaid Rent 2,350 2,335 

Prepaid Guard Contract 19 - 

 Total Other Assets $ 2,485 $ 2,541 

Relocation Advances to Employees—Direct-hire employees are provided a relocation advance when appropriate. 

Travel Advances to Employees—Travel advances are provided to employees when appropriate. Advances remain in 

the financial records until they are offset against travel entitlements or collected. 

Note 9 Liabilities Not Covered by Budgetary Resources

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Intragovernmental Liabilities 

Unfunded FECA Liability $ 27,560 $ 25,582 

Liabilities 

Unfunded Annual Leave 7,237 7,600 

Unfunded Employment-Related Liability 5,629 14,436 

Federal Employee and Veterans Benefits 121,902 119,302 

Total Liabilities Not Covered by Budgetary Resources $ 162,328 $166,920 

Unfunded FECA Liability—A liability for the direct dollar costs of compensation and medical benefits paid on the 

agency’s behalf by the Department of Labor. Since the agency is dependent on annual appropriation, it will include the amount billed for the direct costs in its budget request two years later. 

Unfunded Annual Leave—A liability for annual leave is accrued as leave is earned and paid when leave is taken or 

when the individual terminates. The balance represents the estimated value of annual leave for U.S.-hired employees earned but not used on September 30, 2009. Payments are charged to the appropriation current at the time 

of payment. The valuation of the accrued annual leave for foreign service national employees and the foreign national PSCs has been estimated for this financial statement. There are approximately 195 foreign service nationals 

and 1,878 foreign national PSCs working for the Peace Corps at fiscal year end. Annual leave earned is based on 

local labor law requirements. Annual leave is paid out of current appropriations when taken. 

Unfunded Employment Related Liability—A liability for the estimated severance of foreign national PSCs. Lumpsum payments are generally made to eligible international long-term personal service contractors based on local 

labor law requirements for separation. These payments are made when the individual terminates and are paid out 

of current appropriations. 

Federal Employee and Veterans Benefits—Liability for the actuarial value of future payments for FECA as estimated by the Department of Labor for the agency. 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 79

Financial Section

September 30, 2009

(in thousands)

September 30, 2008

(in thousands)

Intragovernmental 

 Advances from Others $ 2 $ 2 

Other Liabilities 

 Contingent Liability-General Counsel Cases - 1,164 

Total Other Liabilities $ 2 $ 1,166 

Note 10 Other Liabilities

Advances from Others—The balance of amounts advanced by other federal entities for goods and services to be 

furnished (e.g., money advance for Small Project Assistance grants). 

Contingent Liability—See Note 11. 

Note 11 Commitments and Contingencies 

In the opinion of the management and legal counsel, there are no contingent liabilities related to administrative 

proceedings, legal actions, or claims that are probable and measurable as of September 30, 2009.

Disclosure is required if there is a reasonable possibility that a loss may be incurred. The likelihood of a reasonable 

possibility of a loss related to administrative proceedings, legal actions, or claims is estimated to be $190,000 as of 

September 30, 2009.

Note 12 Exchange Revenues 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Intragovernmental Earned Revenues $ 3,195 $ 2,426 

Earned Revenues from the Public 415 471 

Total Exchange Revenues $ 3,610 $ 2,897 

Exchange revenues represent revenue from services provided. This includes reimbursable agreements from other 

government agencies such as U.S. Agency for International Development sponsored HIV/AIDS education, prevention, and mitigation activities; and umbrella programs covering environment, health, youth, micro-enterprise 

and Small Project Assistance technical assistance. 

Note 13 Apportionment Categories of Obligations Incurred: Direct vs. Reimbursable 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Direct Reimbursable Direct Reimbursable 

Category A $ 339,280 $ 3,299 $329,072 $ 2,212 

Total Obligations Incurred $ 339,280 $ 3,299 $329,072 $ 2,212 

All obligations incurred are Category A. The Peace Corps does not have any Category B or Exempt apportionments.

Note 14 Undelivered Orders at the End of the Period 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Undelivered Orders – End of Period $ 61,156 $ 52,468

The undelivered orders are budgetary obligations with and without advances/prepayments placed against federal 

budget authority where no goods or services have been received. 
80 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

Note 15 Reconciliation of Net Cost to Budget 

FY 2009 Direct Reimbursable Total

Net Obligations Incurred $ (331,360) $ (3,187) $ (334,547) 

 Less: Undelivered Orders ( 8,696) 8 (8,688)

Total Expended Obligation Authority (322,664) (3,195) (325,859) 

Financing Sources Used (322,739) (3,195) (325,934) 

Obligations Not Resourced 75 - 75 

Adjustments Reconciling Obligations To Costs Included in Obligations Not in Costs 

 Acquisition of Assets 6,880 - 6,880

 Subtotal 6,880 - 6,880

 Included in Costs Not in Obligations 

 Future Funded Expenses (10,358) - (10,358)

 Depreciation, Amortization, and Depletion 7,705 - 7,705

 Employer Contributions to Employee Benefit Programs 2,002 - 2,002 

 Changes in Actuarial Liabilities 2,600 - 2,600 

 Offsetting Revenues - (3,195) (3,195) 

 Imputed Financing 6,043 - 6,043

 Nonfederal Receivables 14 14

 Net Change on Dispositions (166) - (166) 

 Other Financing Sources (1) - (1)

 Subtotal 7,839 (3,195) 4,644

Adjusted Expended Obligation Authority (323,623) - ( 323,623) 

Statement of Net Costs 323,623 - 323,623 

 Unexplained Differences $ - $ - $ - 

FY 2008 Direct Reimbursable Total

Net Obligations Incurred $ (329,072) $ (2,212) $ (331,284) 

 Less: Undelivered Orders 13,779 214 13,993 

Total Expended Obligation Authority (342,851) (2,426) (345,277) 

Financing Sources Used (342,834) (2,426) (345,260) 

Obligations Not Resourced (17) 0 (17) 

Adjustments Reconciling Obligations To Costs Included in Obligations Not in Costs 

 Acquisition of Assets 8,361 - 8,361

 Subtotal 8,361 - 8,361

 Included in Costs Not in Obligations 

 Future Funded Expenses 7,429 - 7,429 

 Depreciation, Amortization, and Depletion 7,871 - 7,871

 Employer Contributions to Employee Benefit Programs 1,468 - 1,468

 Changes in Actuarial Liabilities 2,852 - 2,852 

 Offsetting Revenues (2,416) (2,426) 

 Imputed Financing 4,462 - 4,462

 Net Transfers Without Reimbursement (1,398) - (1,398) 

 Nonfederal Receivables (17) - (17)

 Net Change on Dispositions (230) - (230) 

 Other Financing Sources 1,212 (10) 1,202

 Subtotal 23,649 (2,426) 21,223 

Adjusted Expended Obligation Authority (358,139) - (358,139) 

Statement of Net Costs 358,139 - 358,139 

 Unexplained Differences $ - $ - $ - 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 81

Financial Section

Note 16 Imputed Financing 

September 30, 2009 

(in thousands)

September 30, 2008 

(in thousands)

Federal Employees Health Benefit Program $ 3,884 $ 3,478 

Federal Employees Group Life Insurance Program 13 12 

Civil Service Retirement System 1,842 846 

Federal Employees Retirement System 169 (6) 

Foreign Service Retirement and Disability System 135 132 

Total Imputed Costs $ 6,043 $ 4,462 

Imputed financing recognizes actual costs of future benefits which include the Federal Employees Health Benefit 

Program, Federal Employees Group Life Insurance Program, and pension benefits that are paid by other federal 

entities. Negative balance shown above was reported by the entity paying the benefits. The agency is not required 

to reimburse other entities for these costs. 

Note 17 Disclosure on Contributions to the Peace Corps 

1. Media Contributions Received –The agency was provided free donated space equivalent to $3.9 million in 

print, radio, and television media through public service announcements in the first 11 months of FY 2009. 

2. Host Country Contributions—The agency received cash and in-kind contributions from host countries. Inkind contributions estimated at $4.3 million in fair market value were received at posts through the end of FY 

2009 for services, supplies, equipment, and facilities. The end of FY 2009 host country cash balance is 

$1,001,269. 
82 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

0

Inspector General’s Audit Transmittal Letter

To: Aaron S. Williams, Director 

From: Kathy A. Buller, Inspector General 

Date: November 12, 2009 

Subject: Audit of Peace Corps’ Fiscal Year 2009 Financial Statements 

This letter transmits the reports of Urbach Kahn and Werlin LLP (UKW) on its financial statement 

audit of the Peace Corps’ Fiscal Year (FY) 2009 Financial Statements. As required by the 

Accountability of Tax Dollars Act of 2002, the Peace Corps prepared financial statements in 

accordance with Office of Management and Budget (OMB) Circular No. A-136, Financial Reporting 

Requirements, and subjected them to audit. 

Audit Reports on Financial Statements, Internal Control, and Compliance and Other Matters 

We contracted with UKW, an independent certified public accounting firm, to audit the Peace Corps’ 

financial statements as of September 30, 2009 and 2008. The contract required that the audit be done 

in accordance with U.S. generally accepted government auditing standards, OMB audit guidance, and 

the Government Accountability Office/President’s Council on Integrity and Efficiency Financial 

Audit Manual. 

UKW’s audit report for FY 2009 includes: (1) an opinion on the financial statements, (2) a report on 

internal control, and (3) a report on compliance and other matters. In the audit of the Peace Corps, 

UKW found: 

• The financial statements were fairly presented, in all material respects, in conformity with U.S. 

generally accepted accounting principles, 

• There were no material weaknesses in internal control.1

1 OMB Bulletin 07-04 defines a material weakness as a significant deficiency, or combination of 

significant deficiencies, that result in a more than remote likelihood that a material misstatement of 

the financial statements will not be prevented or detected.

Since 1961.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 83

Financial Section

• UKW’s report on internal control identified two significant deficiencies:2

 Accounting business processes need enhancements. Enhancements needed are 

related to accountability over selected fixed assets and consistency in reporting of 

Host Country Contributions. 

 Information system security controls need improvement. The auditor cited security 

management, contingency planning, access controls, and change management as 

areas needing improvement. 

• UKW found no instances of reportable noncompliance with laws and regulations it tested or other 

matters that are required to be reported under Government Auditing Standards or OMB guidance. 

 

OIG Evaluation of UKW’s Audit Performance 

In connection with the contract, we reviewed UKW's report and related documentation and inquired 

of its representatives. Our review, as differentiated from an audit in accordance with U.S. generally 

accepted government auditing standards, was not intended to enable us to express, and we do not 

express, opinions on Peace Corps’ financial statements or conclusions about the effectiveness of 

internal control or conclusions on compliance with laws and regulations. UKW is responsible for the 

attached auditor's reports dated November 12, 2009 and the conclusions expressed in the reports. 

However, our review disclosed no instances where UKW did not comply, in all material respects, 

with U.S. generally accepted government auditing standards. 

We would like to extend our thanks to the Peace Corps staff involved in issuing the financial 

statements within the established OMB milestones. Their professionalism, courtesy, and cooperation 

allowed us to overcome the many challenges associated with performance of the audit and our 

oversight of the audit process. If you or a member of the Peace Corps staff has any questions about 

UKW’s audit or our oversight, please contact me or Gerald Montoya, Assistant Inspector General for 

Audit, at 202-692-2907. 

Attachments 

cc: Stacy Rhodes, Chief of Staff 

Thomas Bellamy, Acting Chief Financial Officer 

2 OMB Bulletin 07-04 defines a significant deficiency as a deficiency in internal control, or a 

combination of deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, 

process, or report financial data reliably in accordance with generally accepted accounting principles 

such that there is more than a remote likelihood that a misstatement of the entity’s financial 

statements that is more than inconsequential will not be prevented or detected.
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The Peace Corps :: performance and acco untability report :: fiscal year 2009 85

Financial Section

0

Auditor’s Report

Independent Auditor’s Report

To the Director and Inspector General, 

 Peace Corps 

We have audited the accompanying Balance Sheets of Peace Corps as of September 30, 2009 

and 2008 and the related statements of Net Cost, Changes in Net Position and Budgetary 

Resources for the years then ended. These financial statements are the responsibility of Peace 

Corps’ management. Our responsibility is to express an opinion on these financial statements 

based on our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the 

United States of America; the standards applicable to financial audits contained in Government 

Auditing Standards issued by the Comptroller General of the United States; and Office of 

Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial 

Statements, as amended. Those standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free of material misstatement. 

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures 

in the financial statements. An audit also includes assessing the accounting principles used and 

significant estimates made by management, as well as evaluating the overall financial statement 

presentation. We believe that our audits provide a reasonable basis for our opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, 

the financial position of Peace Corps as of September 30, 2009 and 2008 and its net cost, 

changes in net position, and budgetary resources for the years then ended in conformity with 

accounting principles generally accepted in the United States of America. 

In accordance with Government Auditing Standards, we have also issued our reports dated 

November 12, 2009, on our consideration of Peace Corps’ internal control over financial 

reporting and on our tests of Peace Corps’ compliance with certain provisions of laws and 

regulations and other matters. The purpose of those reports is to describe the scope of our 

testing of internal control over financial reporting and compliance and the results of that testing 

and not to provide an opinion on internal control over financial reporting or compliance. Those 

reports are an integral part of our audit performed in accordance with Government Auditing 

Standards and should be considered in assessing the results of our audit. 

The Management’s Discussion and Analysis (MD&A) is not a required part of the financial 

statements but is supplementary information required by accounting principles generally 

accepted in the United States of America. We have applied certain limited procedures, which 

consisted principally of inquiries of management regarding the methods of measurement and 

presentation of the required supplementary information. However, we did not audit the 

information and express no opinion on it. 
86 The Peace Corps :: performance and acco untability report :: fiscal year 2009

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The Message from the Director, Performance Section, Other Accompanying Information and 

Appendixes listed in the table of contents are presented for additional analysis and are not a 

required part of the financial statements. Such information has not been subjected to the 

auditing procedures applied in the audit of the financial statements and, accordingly, we express 

no opinion on them. 

Arlington, Virginia 

November 12, 2009 
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Financial Section

Independent Auditor’s Report on Internal Control

To the Director and Inspector General, 

 Peace Corps 

We have audited the financial statements of Peace Corps as of and for the year ended 

September 30, 2009 and have issued our report thereon dated November 12, 2009. We 

conducted our audit in accordance with the auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government 

Auditing Standards, issued by the Comptroller General of the United States; and Office of 

Management and Budget (OMB) Bulletin No. 07-04, Audit Requirements for Federal Financial 

Statements, as amended. 

In planning and performing our audit, we considered Peace Corps’ internal control over financial 

reporting as a basis for designing our auditing procedures, we obtained an understanding of 

design effectiveness of internal controls, determined whether they have been placed in 

operation, assessed control risk, and performed tests of Peace Corps’ controls for the purpose 

of expressing our opinion on the financial statements and to comply with OMB Bulletin No. 07-

04, but not for the purpose of expressing an opinion on the effectiveness of internal control over 

financial reporting. We did not test all internal controls relevant to operating objectives as 

broadly defined by the Federal Managers’ Financial Integrity Act (FMFIA) (31 U.S.C. 3512), 

such as those controls relevant to ensuring efficient operations. The objective of our audit was 

not to provide assurance on internal control. Accordingly, we do not express an opinion on the 

effectiveness of Peace Corps’ internal control over financial reporting. 

Our consideration of internal control over financial reporting was for the limited purpose 

described in the preceding paragraph and would not necessarily identify all deficiencies in 

internal control over financial reporting that might be significant deficiencies or material 

weaknesses. However, as discussed below, we identified certain deficiencies in internal control 

over financial reporting that we consider to be significant deficiencies. 

A control deficiency exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to 

prevent or detect misstatements on a timely basis. A significant deficiency is a control 

deficiency, or combination of control deficiencies, that adversely affects Peace Corps’ ability to 

initiate, authorize, record, process, or report financial data reliably in accordance with generally 

accepted accounting principles such that there is more than a remote likelihood that a 

misstatement of Peace Corps’ financial statements that is more than inconsequential will not be 

prevented or detected by the Peace Corps’ internal control. We consider the deficiencies 

described below to be significant deficiencies in internal control over financial reporting. 
88 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

A material weakness is a significant deficiency, or combination of significant deficiencies, that 

results in more than a remote likelihood that a material misstatement of the financial statements 

will not be prevented or detected by the Peace Corps’ internal control. 

Our consideration of the internal control over financial reporting was for the limited purpose 

described in the second paragraph of this section and would not necessarily identify all 

deficiencies in the internal control that might be significant deficiencies that are also considered 

to be material weaknesses. However, we believe that none of the significant deficiencies 

described below is a material weakness. 

Significant Deficiencies

These control deficiencies, detailed on the following pages, are summarized as follows: 

1. Accounting business processes need enhancement 

2. Information systems security controls need improvement 

In addition to the significant deficiencies described above, we noted certain matters involving 

internal control and its operation that we will report to the management of Peace Corps in a 

separate letter. 

This report is intended solely for the information and use of the management of Peace Corps, 

the Peace Corps Office of Inspector General, OMB, the Government Accountability Office and 

Congress, and is not intended to be and should not be used by anyone other than these 

specified parties. 

Arlington, Virginia 

November 12, 2009 
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Financial Section

SIGNIFICANT DEFICIENCY 1 

ACCOUNTING BUSINESS PROCESSES NEED ENHANCEMENT 

Property Plant & Equipment 

Fiscal year 2009 was the second full year implementing the Fixed Asset Module. Although 

Peace Corps continued to make improvements in accounting for fixed assets, problems still 

exist in accounting for Office of the Chief Information Officer (OCIO) assets timely and 

accurately. OCIO continually struggled to report asset additions and dispositions timely and 

accurately to the Office of the Chief Financial Officer. Additionally, OCIO is unable to 

consistently locate where assets are physically located. We identified the following issues 

through our FY 2009 internal control and substantive testing. 

Physical Observation: 

• Several assets observed during physical observation could not be located in the asset 

listing. Peace Corps determined that these assets may not have been capitalized and 

therefore, would not be on the listing. However, supporting documentation was not provided 

to show that they should not be capitalized. 

• There were three instances where assets from the asset listing could not be physically 

located. Peace Corps determined that these missing assets to be expendable items and 

therefore should not be tracked. 

• The asset listing contained numerous assets without identification numbers. 

Recommendations 

We recommend the Peace Corps Director: 

1a. Enforce current policies designed to ensure complete and accurate asset listing. 

1b. Ensure that roles and responsibilities outlined on Peace Corps Standard Operating 

Procedures (SOP) are carried out by posts and HQ for property accounting and financial 

reporting personnel that perform accuracy, verification, and completeness checks on the 

capitalized property listings. 

1c. Develop procedures to ensure that additions and disposals recorded accurately and timely. 

1d. Designate a receiving clerk to accept all IT assets upon delivery and to maintain a listing of 

all IT assets received. 

Host Country Contributions 

Posts receive two types of Host Country Contributions (HCC): in-kind and cash. In-kind 

contributions are any non-cash items such as housing for volunteers, utilities, and donated 

supplies. Cash HCCs are used for payment to local contractors, allowances for volunteers and 

Peace Corps programs. Currently, about ten to twelve Posts have cash contributions balances 

in local currency as of September 30, 2009, for which the donor country may or may not have 

restricted the funds for specific purposes. Cash donations are recorded in FOR Post and 
90 The Peace Corps :: performance and acco untability report :: fiscal year 2009

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recognized as an HCC receipt. Posts are required to deposit HCC receipts and submit a deposit 

slip to Headquarters. 

In fiscal year 2007 Peace Corps began working with legal counsel to determine the nature of the 

cash contributions and whether the cash received from host countries meet the definition of gifts 

or donations and whether the balance should be reported by Peace Corps on its principal 

financial statements in addition to footnote disclosure. The current guidance published in CFO 

Policy Statement 07-01, Accounting for Funds and Miscellaneous Items, was prepared, 

reviewed, approved and disseminated in accordance with the agency’s authority to provide 

definitive guidance where policy does not specifically cover a gray area in the law. This authority 

was issued to describe the procedures for accounting and reporting of HCC funds based on the 

determination that these funds should be treated as fiduciary activity and the property of the 

donating country. 

In fiscal year 2008, UKW was informed by the Office of Inspector General (OIG) about a 

suspected fraud in excess of $50,000 related to HCC Funds at one of the Posts. The OIG team 

followed up on this matter. 

UKW proposed recommendations in fiscal year 2008 to revise the CFO policy 07-01 to treat 

HCC as fiduciary activities and report the balances in the financial statements. However, Peace 

Corps has failed to comply with the deadlines established by their management and have 

extended the date for final implementation until fiscal year 2010. 

Recommendations 

We recommend the Peace Corps Director: 

1e. Amend current CFO Policy 07-01 regarding HCCs to ensure that recognition, recording, 

monitoring and reporting is consistent with reporting fiduciary activity. 

1f. Continue to work with legal counsel to determine the nature of these assets and any 

restrictions that may impact their reporting or classification. Peace Corps management 

should ensure the policy is updated to reflect the legal counsel and Peace Corps’ 

determination on how to report these assets and implement the updated policy in fiscal year 

2010 to address the proper reporting of HCC in the financial statements and the full 

disclosure of Peace Corps fund sources. 

1g. Set up strict guidelines on access, dual authorization and handling of cash and other forms 

of host country contributions to prevent embezzlement of such funds. 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 91

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SIGNIFICANT DEFICIENCY 2 

INFORMATION SYSTEM SECURITY CONTROLS NEED IMPROVEMENT 

Peace Corps made improvements to its information systems control environment during FY 

2009. However, we found that certain internal control weaknesses related to the Financial 

Management System, Odyssey and Peace Corps’ overall Information Technology (IT) 

environment continued to exist at September 30, 2009. Our assessment of the general and 

application controls of Peace Corps’ key IT infrastructure and financial systems identified the 

following conditions. 

Control Weaknesses 

Security Management 

 As reported under the Fiscal Year 2009 Federal Information Security Management Act 

(FISMA) assessment, Peace Corps has not certified and accredited 5 of the agency’s 12 

information systems. Specifically, the Domestic and International General Support 

Systems which support the financial management systems have not been certified and 

accredited. Without completing the certification and accreditation process, senior level 

agency officials will not have taken the appropriate steps to mitigate or accept risk for 

their information systems as required by OMB. In addition, without a complete 

certification and accreditation package (i.e. security plans, risk assessments, 

contingency plans) proper security may not be administered over the data within the 

agencies information systems. 

Contingency Planning 

During the FY 2009 FISMA assessment, we noted the following regarding Peace Corps’ 

controls surrounding contingency planning for agency’s information system environment: 

 Peace Corps did not have contingency plans in place for 4 of its 12 information systems 

including the Domestic and International General Support Systems. 

 The Peace Corps Business Impact Analysis had not been updated by the agency to 

ensure identified impacts reflect current agency continuity of operations planning and are 

accurately incorporated into disaster recovery planning for the agency’s current system 

environment. 

 The Office of Chief Information Officer Business Recovery Plan has not been updated to 

reflect the new recovery procedures. 

 Personnel with disaster recovery responsibilities had not received appropriate 

contingency training. 

 Peace Corps was unable to provide evidence of backup testing and there were no 

records of contingency plan testing to determine if the organization includes a full 

recovery and reconstitution of Peace Corps systems.

Peace Corps management did make improvements related to contingency planning during FY 

2009 as they began the development of alternate methods for contingency planning and 

disaster recovery utilizing virtualization and the Atlanta, Georgia Regional Recruiting Office. 

Peace Corps is in the process of revising recovery plans to include the new virtualization 
92 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Financial Section

environment and conducted an exercise in late September 2009. However, corrective action is 

still in process. 

The lack of an up to date agency Business Impact Analysis creates a deficiency in the 

contingency planning process for information systems. A deficiency in this process means that 

key impacts or threats could be overlooked leading to the ineffective or delayed recovery of 

agency systems. The lack of Contingency Plan testing for Peace Corps systems increases the 

likelihood that agency systems will not be effectively recovered following a major disruption of 

service. In addition, the lack of contingency training may lead to individuals not understanding 

their roles during an emergency situation. 

Access Controls 

 We noted weaknesses relating to the Odyssey UNIX environment. Managementapproved access request forms were not on file for all individuals with access to the 

production environment servers. Without management-approved access request forms, 

management cannot track who has been given access to the system and management 

does not know if the appropriate personnel are accessing the system. 

 System administrators for Odyssey modules were found to have functional user roles 

within Odyssey which violates the principle of segregation of duties. In addition, the 

system administrators had the capability to grant themselves access to additional 

system roles. Furthermore, we noted that an Odyssey functional lead with conflicting 

roles within the system. Unauthorized and erroneous transactions may occur if proper 

procedures are not implemented to control and limit an employee’s effective role within 

the system. 

 Peace Corps network accounts are not being deactivated in a timely manner. We noted 

the following conditions: multiple accounts were enabled with passwords that have not 

been reset in over ninety days, accounts remained active that had never been logged 

into, accounts were enabled without having a password set and accounts were enabled 

that did not require a password. Since accounts are not disabled after a defined period 

of inactivity, accounts may be left active increasing the risk associated with unauthorized 

access to the system. 

Change Management 

 Developers for the FOR HQ application had access to the production environment of the 

FOR HQ application. In addition, multiple accounts for the same individuals were present 

in the production environment. Inadequate segregation between development and 

production environments increases the risk of inadvertent or intentional unauthorized 

software modifications being placed in the production environment. Unauthorized 

software modifications, or modifications that have not been independently reviewed, may 

go undetected. As a result, the ability to investigate and address any identified issues in 

a timely manner is diminished. Multiple unnecessary accounts for the same individuals 

also increase the risk that an account may be used improperly. 

As required by OMB Circular A-130, Management of Federal Information Resources, Appendix 

III security accreditation provides a quality control and challenges managers and technical staff 

at all levels to implement the most effective security controls possible in an information system. 
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Financial Section

National Institute of Standards and Technology (NIST) Special Publication 800-37, Guide for the 

Security Certification and Accreditation of Federal Information Systems, states “Security 

certification is a comprehensive assessment of the management, operational, and technical 

security controls in an information system, made in support of security accreditation, to 

determine the extent to which the controls are implemented correctly, operating as intended, 

and producing the desired outcome with respect to meeting the security requirements for the 

system. The results of a security certification are used to reassess the risks and update the 

system security plan, thus providing the factual basis for an authorizing official to render a 

security accreditation decision.” 

NIST Special Publication 800-53, Revision 2 Recommended Security Controls for Federal 

Information Systems Control CP-4 Contingency Plan Testing and Exercises states: “The 

organization: (i) tests and/or exercises the contingency plan for the information system at least 

annually using tests and/or exercises to determine the plan’s effectiveness and the 

organization’s readiness to execute the plan; and (ii) reviews the contingency plan test/exercise 

results and initiates corrective actions. The organization coordinates contingency plan testing 

and/or exercises with organizational elements responsible for related plans.” 

NIST Special Publication 800-53 Revision 2, Security Control CM-5, states the following 

regarding access restrictions for change, “The organization: (i) approves individual access 

privileges and enforces physical and logical access restrictions associated with changes to the 

information system; and (ii) generates, retains, and reviews records reflecting all such changes.” 

NIST Special Publication 800-53 Revision 2, Security Control AC-2 – Account Management, 

states: “The organization manages information system accounts, including establishing, 

activating, modifying, reviewing, disabling, and removing accounts. The organization reviews 

information system accounts at least annually.” 

Recommendations

We recommend the Peace Corps Director ensure that: 

2a. Full certification and accreditation is completed for the Domestic and International 

Infrastructures that support the financial management system in accordance with Peace 

Corps policy and OMB Circular A-130 guidance. 

2b. The Business Impact Analysis is reevaluated and updated to accurately reflect the current 

Peace Corps continuity of operations planning and to support disaster recovery planning, 

testing, and updating for the agency’s current environment. 

2c. Contingency Plans are developed and implemented for all Peace Corps information 

systems. 

2d. A full Disaster Recovery test is conducted that will ensure all system Contingency Plans are 

included, as well as testing of system backups to determine if procedures for reconstitution 

and recovery of the systems are adequate. In addition, ensure training is provided to 

personnel with disaster recovery responsibilities. 
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2e. User access request forms for individuals with access to the Odyssey UNIX servers are 

completed and kept updated according to individual system access rights for each individual 

with system access. 

2f. Odyssey system administrator roles are segregated from functional roles. In cases where 

management deems it necessary to have certain roles, audit controls for auditing Odyssey 

user accounts should be documented. 

2g. Periodic review of user accounts that violate the Odyssey segregation of duties matrix is 

implemented and ensure that all activity is monitored. 

2h. Procedures are developed and implemented to periodically audit network user accounts to 

(a) verify that user accounts are still currently being used, (b) verify that there are 

reasonable justifications for any user accounts that are not being accessed, and (c) disable 

any user accounts that have not been accessed without reasonable and documented 

justification. 

2i. Logical access controls are implemented to restrict a developer from having access to the 

production environment of the FOR HQ application. If resources prohibit complete 

segregation of access, then compensating controls should be implemented to reduce the 

risk associated with access that is not segregated among environments. 

2j. Users with access to the FOR HQ SQL Server and Visual Source Safe are permitted access 

through the use of a single account. 
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Financial Section

Independent Auditor’s Report on Compliance and Other Matters 

To the Director and Inspector General, 

 Peace Corps 

We have audited the financial statements of Peace Corps as of, and for the year ended 

September 30, 2009, and have issued our report thereon dated November 12, 2009. We 

conducted our audit in accordance with the auditing standards generally accepted in the United 

States of America; the standards applicable to financial audits contained in Government 

Auditing Standards, issued by the Comptroller General of the United States; and Office of 

Management and Budget (OMB) Bulletin 07-04, Audit Requirements for Federal Financial 

Statements, as amended. 

The management of Peace Corps is responsible for complying with laws and regulations 

applicable to Peace Corps. As part of obtaining reasonable assurance about whether Peace 

Corps’ financial statements are free of material misstatements, we performed tests of Peace 

Corps’ compliance with certain provisions of laws and regulations, non-compliance with which 

could have a direct and material effect on the determination of financial statement amounts and 

certain other laws and regulations specified in OMB Bulletin 07-04. We limited our tests of 

compliance to these provisions and we did not test compliance with all laws and regulations 

applicable to Peace Corps. Providing an opinion on compliance with certain provisions of laws 

and regulations was not an objective of our audit, and, accordingly, we do not express such an 

opinion. 

The results of our tests of compliance with laws and regulations described in the preceding 

paragraph disclosed no instances of reportable noncompliance or other matters that are 

required to be reported under Government Auditing Standards or OMB guidance. 

This report is intended solely for the information and use of the management of Peace Corps, 

the Peace Corps Office of Inspector General, GAO, OMB and Congress, and is not intended to 

be and should not be used by anyone other than these specified parties. 

Arlington, Virginia 

November 12, 2009 
o th e r acc o mpany i ng i nf o rmat i o n

Agriculture Volunteer, Belize
The Peace Corps :: performance and acco untability report :: fiscal year 2009 97

Other Accompanying Information

0

The Inspector General’s Statement on 

the Peace Corps’ Management and Performance Challenges

The Inspector General’s Statement on 

the Peace Corps’ Management and Performance Challenges

As required by the Reports Consolidation Act of 2000 and Office of Management and Budget 

guidance, I am pleased to submit the following summarizing what I consider to be the most 

serious management and performance challenges facing the Peace Corps. This statement has 

been compiled based on Office of Inspector General (OIG) audits, investigations, evaluations and 

the general knowledge of the agency’s operations. 

Sincerely, 

Kathy A. Buller, Inspector General 

September 30, 2009 

............................................................................................................

Challenge Capacity of Peace Corps Business Operations to Support Growth and 

 Expansion 

As a result of the response to the President’s “call to service,” and as more developing 

nations request Peace Corps programs it is anticipated the agency will experience 

significant growth. Such growth will necessitate increased funding levels. Efficient and 

effective management of the resulting rapid growth and larger budgets will present 

challenges for agency management. 

Peace Corps’ current business operations appear to be sufficient for supporting present 

levels. However, without enhancements to its business processes it will be difficult for 

the agency to continue providing the same level of Volunteer support based on projected 

growth. Significant increases in the number of Peace Corps Volunteers will have a major 

impact across overall operations and cause considerable stress in service delivery 

capabilities of several key business operations. Operations most impacted include: 

• Volunteer Recruitment & Selection 

• Volunteer Support Services 

• Financial Management 

• Information Technology 

• Acquisitions & Contracting 

• Safety & Security 

• Human Resources 

• Administrative Services 
98 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Other Accompanying Information

As a result, we believe it is a management challenge for the Peace Corps to ensure that 

business operations can respond with an effective level of support in an era of increased 

volunteerism and resulting rapid expansion of agency programs and/or operations around 

the world.

Challenge Information Technology Management

Peace Corps has not established an adequate information technology (IT) strategy and an 

effective IT governance process as required by the Clinger-Cohen Act of 1996 and OMB 

Circular A-130. Also, overall budgeting for IT resources is not effective and has placed 

the agency at risk. The most significant risks are associated with ensuring that: limited 

resources will be put to use where most needed; funds spent on contracts consistently 

meet requirements; and the IT infrastructure effectively supports the Peace Corps 

mission. Achieving full compliance with federal laws and regulations that apply to 

managing the Peace Corps IT infrastructure and improving the IT budget process are 

critical management challenges. 

Management continues to make progress in strengthening the Peace Corps’ IT 

architecture and security management. However, there are some issues regarding 

information security and risk management of system architecture that remain a 

management challenge. Further, several issues disclosed in prior year audits relating to 

compliance with the Federal Information Security Management Act have not been fully 

remediated. The most significant issues follow: 

● Five of twelve of the agency’s information systems have not received final 

certifications and accreditations indicating that they are acceptable to use 

● Processes for systems configuration management have not been fully or 

consistently implemented 

● Contingency plans were not in place for four of twelve information systems and 

only one of the eight systems having a contingency plan had been tested in 

accordance with National Institute of Standards and Technology policy to ensure 

full recovery following a major disruption of service 

Challenge Acquisitions and Contract Management 

Operations relating to Peace Corps’ acquisitions and contracting are worldwide in scope 

adding complexities that are not common to most federal agencies. In FY 2009 the 

agency expended nearly $80 million for goods and services, or approximately 23 percent 

of the Peace Corps budget. This figure includes expenditures of about $48.7 million for 

personal services contracts and just over $31 million for other contracts. Recent White 

House initiatives implemented through OMB have directed federal agencies to undertake 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 99

Other Accompanying Information

a number of initiatives relating to acquisitions and contract management. One of these 

initiatives requires agencies to develop a plan to save 3.5 percent of baseline contract 

spending in FY 2010, and an additional 3.5 percent in FY 2011. It is unclear at the 

present time whether agencies not subject to the Chief Financial Officers Act will be 

required to implement all of the OMB initiatives. However, if the requirement for cost 

savings of 7 percent through the end of FY 2011 is imposed on the Peace Corps it would 

pose a significant challenge to the agency since personal services contracts currently 

represent over 60 percent of overall contract expenditures. Also, as a part of the new 

initiatives, OMB has directed that federal agencies make improvements in their 

contracting processes, including reducing the use of high risk contracts such as 

noncompetitive and cost-reimbursement. 

Recent OIG audit work has disclosed that although progress is being made to improve the 

agency’s overall contracting processes; resourcing issues have impacted the ability to 

quickly implement plans for strengthening contract surveillance; compliance with 

applicable laws and regulations; and customer support services. Additional requirements 

imposed upon the Peace Corps’ acquisition workforce could potentially challenge already 

strained resources. 

Challenge Property Management

The FY 2009 (3rd Quarter) Balance Sheet indicates the Peace Corps’ general property, 

plant, and equipment (PP&E) has a net book value of about $31.5 million. Peace Corps’ 

general PP&E includes vehicles, computer equipment, office furniture, software, other 

equipment, etc. Property management involves organizational activities related to 

acquiring, tracking, controlling, and disposing these items. Audits and investigations 

performed over the last 12-months have disclosed that not all Peace Corps property is 

adequately safeguarded or disposed in accordance with applicable federal and Peace 

Corps requirements. Significant problems have been noted with accountability of certain 

assets, managing excess property, and following policies and procedures related to 

property disposal. For example, during FY 2009 external auditors reported that the 

agency was not able to accurately track assignment of laptop computers. Other examples 

of deficient property management includes not disposing of property identified as excess 

to needs in a timely manner and failing to follow applicable guidance when disposing 

property through public sales. Ineffective property management unnecessarily exposes 

the agency to risks associated with fraud, waste, and abuse and drives operating costs up. 

As a result, improving overall property management and strengthening the system for 

internal control related to property is a management challenge. 

Challenge Protection of Personally Identifiable Information 

The Peace Corps routinely receives, processes, and maintains significant amounts of 

Personally Identifiable Information (PII). PII includes information that can be used to 
100 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Other Accompanying Information

distinguish or trace an individual’s identity, such as name, Social Security Number, or 

biometric records. Such information can be used to link to other data such as bank 

accounts and other financial or personal information that can assist perpetrators in 

committing crimes associated with identity theft. During FY 2009 a number of cases of 

PII security breaches involving social security numbers, medical data, and other PII data 

have been brought to our investigators’ attention. For example, an unsecured container 

with over 500 pieces of sensitive information, including individual medical records and 

other PII data, was left unattended for about three days in a public area. Other instances 

include recurring problems involving various breaches in personal medical data. 

Investigations into these security lapses disclosed numerous internal control weaknesses 

and failure to follow federal laws and regulations and Peace Corps policy on protecting 

PII. As a result it is a challenge for management to improve its system for internal 

control over PII and ensure Peace Corps personnel consistently comply with applicable 

federal and agency guidance.
The Peace Corps :: performance and acco untability report :: fiscal year 2009 101

Other Accompanying Information

0

Agency Response to the Inspector General’s Statement on 

the Peace Corps’ Management and Performance Challenges

To: Kathy A. Buller, Inspector General 

From: Aaron S. Williams, Director

Date: November 9, 2009

Subject: Agency Response to the Inspector General’s Statement on 

Management and Performance Challenges

Thank you for your September 30 statement addressing the management and performance challenges 

faced by the Peace Corps, as required by the Reports Consolidation Act of 2000 and Office of Management 

Budget (OMB) guidance.

The agency is pleased to support the work of the Office of the Inspector General as it carries out its work 

through audits, investigations, and evaluations. The OIG prevents and detects fraud, waste, abuse, and 

mismanagement. By completing these tasks the OIG promotes economy, effectiveness, and efficiency in 

government. 

I would like to address the areas of challenge identified in your statement. The agency continues to strive 

for constant improvement as it carries out its worldwide mission.

Challenge 1: Capacity of Peace Corps Business Operations to Support Growth and Expansion

While preparing for the submission of the fiscal year 2010 President’s budget to Congress, the Peace Corps 

worked closely with OMB to develop a strategic initiative to increase the number of Peace Corps Volunteers 

25 percent by 2012 and 50 percent by 2016. The goal of this initiative is to provide quality Volunteer growth 

that is strategic, sustainable, and cost effective. 

In preparation for growth in existing Peace Corps countries and in countries that do not currently have a 

Peace Corps program, all operations within the agency have identified best practices and required resources 

to ensure that growth occurs in an efficient and cost effective manner. With adequate funds available, 

several growth initiatives will begin in FY 2010 and expand in FY 2011. Agency growth will emphasize 

strategic recruitment, sustainable programming, exceptional Volunteer support, and strong leadership.

The Director has allocated significant current funding to begin improving systems and to reorganize 

and add staff to our recruiting efforts. A Volunteer Delivery System (VDS) Modernization Project that is 

currently in development will greatly increase the agency’s capacity to support growth and expansion by 

improving and streamlining business operations. All organizations within Peace Corps are participating 

in the development of a single, innovative, integrated and efficient system that will replace the 35 disparate 

systems currently utilized across six different operating platforms. The Volunteer Delivery System will 

incorporate a new electronic health records system and an applicant matching system to better enable the 

agency to recruit, place, and support increased numbers of Volunteers through the end of their service and 

beyond. 
102 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Other Accompanying Information

As the agency seeks to increase the number of Americans serving overseas as Peace Corps Volunteers, 

additional resources will be required within all offices that assist in the recruitment, selection, and 

placement of Volunteers and those who provide support to Volunteers during their 27 months of service.  

Given adequate funding, the agency will pursue quality growth that places Volunteers strategically, safely, 

and with sufficient training and support to meet the development needs of the host countries. 

Challenge 2: Information Technology Management 

The expansion of the Peace Corps’ global footprint and the increased integration of information technology 

(IT) services delivery at posts and headquarters have impacted the agency’s IT strategy, particularly with 

the budget challenges of the recent past. The agency is in the process of formulating a response and has 

already begun developing plans to address the gaps identified in the recent IT audit by the OIG. 

The agency has an IT governance structure in place and continues to refine its processes and procedures 

to accommodate the agency’s mission and business needs. Peace Corps believes that internal controls are 

an important and necessary ingredient in the successful implementation of any governance structure. To 

achieve this, Peace Corps has recently implemented structural changes to ensure appropriate oversight 

and transparency in all IT projects.

In 2007, the agency implemented an aggressive plan to certify and accredit all Peace Corps systems that 

require Federal Information Security Management Act (FISMA) reporting. The plan calls for a rate of 

three systems a year. Seven systems of 12 have been accredited since 2007, one in 2007, three in 2008, and 

three in 2009. The agency plans to continue accrediting systems at three per year and is poised to increase 

the rate should additional funding be available.

The Peace Corps within the last six months has been engaged in setting up a robust IT Disaster Recovery 

(ITDR) infrastructure capability. The agency considers continuity of operations as its highest priority in 

the event of a service disruption and has devoted significant efforts in the area of contingency planning this 

year as a result. As part of this effort, the agency designed and began building the new ITDR facility (85 

percent complete) at the Atlanta regional office, is using virtualization technologies to improve IT recovery, 

and documented and tested all agency mission critical systems against the 72-hour ITDR standard as 

defined in the last Business Impact Analysis undertaken by the Peace Corps.

The agency also redesigned and implemented a new Peace Corps backup process and adopted a new remote 

access capability to allow the ITDR team to operate from any Internet-capable location during a service 

disruption to the headquarters building.

Peace Corps acknowledges the existence of some gaps in our ability to provide contingency plan 

documentation for applications and systems and is developing a detailed plan to remedy these gaps. 

Challenge 3: Acquisitions and Contract Management 

Consistent with the spirit and intent of the new White House contracting initiatives, the Peace Corps 

has been and is actively pursuing cost savings for the agency. Whether or not the agency is required to 
The Peace Corps :: performance and acco untability report :: fiscal year 2009 103

Other Accompanying Information

implement all of the OMB initiatives (reducing 3.5 percent of contract spending in FY 2010 and in FY 2011 

and reducing 10 percent of new high-risk contracts in FY 2010), the following cost saving initiatives are 

being pursued. The agency recently completed in-sourcing one IT service contract and is actively pursuing 

in-sourcing of three more major support service contracts for further savings. In addition, an existing cost 

reimbursement training services contract will be converted to a firm fixed-price contract to realize further 

savings. A program to reduce the agency’s cost of medical supplies and pharmaceuticals was begun in FY 

2009 and will continue throughout FY 2010. 

Increased costs worldwide affected operational activities within the agency during FY 2009.  However, 

with the requested level of appropriated funding negotiated with OMB in the President’s FY 2010 budget, 

these resourcing issues should be alleviated.

Challenge 4: Property Management 

The management and control of property, plant, and equipment (PP&E) in more than 70 countries and 

in multiple sites in the United States has always been a challenge. Peace Corps is developing specific 

requirements for an agencywide automated inventory system. The planned inventory system will greatly 

strengthen internal controls and improve overall property management, allowing staff to track, control, 

and report the acquisition and disposal of inventory items at posts. Additionally, this automated system 

will allow Peace Corps headquarters to reconcile purchases and disposals throughout the agency. 

This year, the agency will pilot a Web-based training tool for proper disposal of assets and an inventory 

system for furniture and equipment at Peace Corps headquarters. A successful pilot will allow the new 

automated systems to be expanded to all posts to provide an interim solution until the agencywide inventory 

system is ready for implementation.

Challenge 5: Protection of Personally Identifiable Information 

Peace Corps has taken substantial and proactive steps to control the use of personally identified information 

(PII) and to ensure the protection of PII.  

The agency conducted a comprehensive evaluation of all Peace Corps forms and reduced the total from 400 

forms to 225. The number of forms requesting social security numbers (SSN) was reduced to 36 and these 

forms now have a Privacy Act statement incorporated into the form. 

Peace Corps is also working to reduce the amount of PII in our automated systems and to date we have 

removed PII from four automated systems and reduced or removed PII from four applications. 

The new Volunteer Delivery System (VDS) is an automated system that will track Volunteers from the 

initial recruiting contact through the whole of their Peace Corps service. This new VDS will consolidate 

over 35 existing systems and will eliminate the use of SSN in all of them, further reducing the use of PII.

Every new Peace Corps employee undergoes privacy awareness training to emphasize the importance of 

protecting PII and the proper disposal of sensitive documents. During this training, data breach notifications 

procedures are explained and potential disciplinary actions for improper use of PII are also covered. 
104 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Other Accompanying Information

Summary of Financial Statement Audit and Management Assurances Tables

0

Summary of Financial Statement Audit

Audit Opinion Unqualified

Restatement No

Material Weaknesses Beginning 

Balance New Resolved Consolidated Ending Balance

Total Material Weaknesses 0 0 0 0 0
The Peace Corps :: performance and acco untability report :: fiscal year 2009 105

Other Accompanying Information

Summary of Management Assurances

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

Statement of Assurance Unqualified

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance Unqualified

Material Weaknesses Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0 

Conformance with Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Systems conform to financial management system requirements

Non-Conformances Beginning 

Balance New Resolved Consolidated Reassessed Ending Balance

Total Non-Conformances 0 0 0 0 0 0
106 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Other Accompanying Information

Improper Payments Information Act (IPIA)

The Improper Payments Information Act (IPIA) of 2002, Public Law No. 107-300, requires agencies to 

annually review their programs and activities to identify those susceptible to significant improper payments. 

No improper payments were identified this fiscal year internally or by the external auditors that would reach 

the defined IPIA annual threshold of 2.5 percent and $10 million. The Peace Corps has no programs and 

activities that are risk susceptible to such significant improper payments. The Peace Corps is not identified in 

Appendix C, OMB Circular A-123 (formerly Section 57, “Programs for which Erroneous Payments Information 

is Requested,” in OMB Circular A-11). 
This page was intentionally left blank.
app e nd i c e s

Business Volunteers, Niger
The Peace Corps :: performance and acco untability report :: fiscal year 2009 109

Appendices

Appendix 1

Summary of Audit Findings

0 Appendices

Appendix 1 

Summary of Audit Findings 

The FY 2009 financial statement audit report issued by Urbach Kahn and Werlin LLP (UKW) 

beginning on page 85 indicated two significant deficiencies in control. Those significant 

deficiencies “Accounting Business Processes Need Enhancement” and “Information System 

Security Controls Need Improvement” and the specific audit findings that constitute those 

deficiencies are shown below with an estimated completion date. 

Significant Deficiency 1 – Accounting Business Processes Need Enhancement 

 Estimated 

Audit Recommendations Completion

Enforce Property, Plant and Equipment (PP&E) policies and procedures to include 3rd Qtr FY 10 

additions and disposals and designate an IT assets receiving clerk 

Enhance Host Country Contributions internal controls, reporting, and classification 2nd Qtr FY 10 

Significant Deficiency 2 – Information System Security Controls Need Improvement 

 Estimated 

Audit Recommendations Completion

Complete full certification and accreditation for the domestic and international 4th Qtr FY 10 

infrastructures that support the financial management system Odyssey 

Reevaluate and update the Business Impact Analysis to reflect the current continuity of Under Review 

operations planning and support disaster recovery planning, testing, and updating 

Develop and implement contingency plans for all information systems 4th Qtr FY 10 

Conduct a full disaster recovery test to ensure all contingency plans are included, as 4th Qtr FY 10 

well as test system backups and ensure disaster recovery training is provided 

Complete user access request forms for Odyssey UNIX server and keep updated 2nd Qtr FY 10 

Segregate Odyssey system administrator roles and document audit controls for any 1st Qtr FY 10 

exception 

Perform review of user accounts that violate the Odyssey segregation of duties matrix 2nd Qtr FY 10 

and monitor activity 

Develop and implement procedures to audit network user accounts 3rd Qtr FY 10 

Implement controls to restrict developer access to the FOR Headquarters application 3rd Qtr FY 10 

production environment and implement compensating controls for any exception 

Permit user access to the FOR Headquarters server and Visual Source Safe through 2nd Qtr FY 10 

use of a single account 
110 The Peace Corps :: performance and acco untability report :: fiscal year 2009

Appendices

Appendix 2

Glossary of Acronyms 

DOL Department of Labor

DOS Department of State

FECA Federal Employees 

Compensation Act

FISMA Federal Information Security

Management Act

FMFIA Federal Managers’ 

Financial Integrity Act

FSN Foreign Service National

FY Fiscal Year

HCC Host Country Contributons

HCN Host Country National

ICT Information and 

Communication Technology

IPIA Improper Payments 

Information Act

IT Information Technology

ITDR Information Technology 

Disaster Recovery

MD&A Management’s Discussion 

and Analysis

NIST National Institute 

of Standards and Technology

OCIO Office of the Chief 

Information Officer

OIG Office of the Inspector General

OMB Office of Management 

and Budget

OPM Office of Personnel Management

PCSSO Peace Corps Safety 

and Security Officer

PEPFAR President’s Emergency 

Plan for AIDS Relief

PII Personally Identifiable 

Information

PP&E Property, Plant and Equipment

PSC Personal Service Contractor

RPCV Returned Peace Corps Volunteer

SSN Social Security Number

UKW Urbach Kahn and Werlin LLP

USAID U.S. Agency for 

International Development

VDS Volunteer Delivery System

0
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